No clear trend emerging on Nifty

Domestic equity market closed the week with third successive session of declines in the benchmark indices.

The market witnessed a sharp fall in the last hour of trade. The Sensex fell 289.23 points or 0.73 per cent closing at Rs 39,452.07. The Nifty-50 index closed 90.70 points or 0.07 per cent down at 11,823.30.

The broader market closed in the red with the BSE Mid-Cap down 1.02 per cent while the Small-Cap fell 0.76 per cent.

Though, large-scale volatility is ruled out in the near future, volatility indicator India VIX index rose 1.72 per cent to 13.90 as against it recent high of 30.18 touched on May 22.

The advance-decline ratio on BSE worsened further with 1,739 stocks losing and only 791 stocks advancing while 136 scrips closed unchanged.

Among the sectoral indices baring Capital Goods (up 0.21 per cent) all other fell led by Realty, the top loser at 2.11 per cent, other sectoral losers included FMCG (-1.01 per cent), Bankex (-1.33 per cent), Auto (1.05 per cent) and Telecom (-1.62 per cent).

Private banks dominated the top losers chart in the Sensex index led IndusInd Bank (-4.36 per cent), Axis Bank (-2.39 per cent), Kotak Mahindra Bank (-2.10 per cent), Yes Bank (-1.58 per cent), Tata Motors (-1.97 per cent), Bharti Airtel (-2.74 per cent) and Bajaj Auto (-1.90 per cent).

Foreign portfolio were net sellers of equities worth Rs 2,38.64  crore while the domestic institutions were net buyers by Rs 376.47 crore.

Technical View
Mustafa Nadeem, CEO, Epic Research said, "Muted global and domestic cues, lower volume and post major events kept Nifty in a hangover. Nifty-50 spent its third week between 11,800 - 12,000 as indecisiveness was seen with no clear trend being able to establish. Consolidations near all-time high can result in either continuation of the trend or distribution at higher levels."

"Technically, We are still in an uptrend but the market seems to be dull and stalling around all-time highs. On the downside 11,800 has been held for quite some time and should hold if bulls need to be in power. Any failure there will call in for a short term correction to 11,600 - 11,550," Nadeem Said.

Market View
Sanjeev Zarbade, Vice President - PCG Research, Kotak Securities said, "The BSE-30 Index lost 164 points (0.4 per cent) in the past week to close at 39,452.07. The markets were in narrow range as stable inflation, decent IIP growth print and falling crude prices supported markets even as fresh concerns related to the ADAG group and Dewan Housing led to selling pressure in banks. Also, the NBFC sector stocks were under pressure on fears of default and more regulatory measures from the RBI.

Key events to look forward to would be the Fed meeting in June and Union Budget in early July."