Reversal signals appear on Nifty charts

The market snapped four-day losing streak to end marginally higher in a highly volatile trading session.

Driven by select buying in banking and IT stocks, the BSE Sensex gained 85.55 points to 39,046 and the Nifty rose 19.30 points at 11,691.50. The market breadth was in favour bears as about 1,546 shares declined against 964 advancing shares on the BSE.

Major index gainers were ICICI Bank, Infosys, HCL Technologies, TCS, Vedanta, Coal India, Power Grid, Ultratech Cement and BPCL.

Among major losers were Indiabulls Housing Finance down 7 per cent, while Maruti Suzuki, Hindalco, Sun Pharma, Axis Bank and HDFC were down 1-2 per cent.

Jet Airways plunged over 50 per cent intraday after landing in bankruptcy court.

Reliance Infrastructure, Reliance Capital, Jain Irrigation, Kaveri Seeds, IRB Infrastructure and Arvind were down 5-20 per cent.

Praj Industries, SRF, Shriram Transport, Varun Beverages, LG Balkrishnan, IOL Chemicals gained 3-7 per cent.

Technical View
According to technical analysts, if Nifty slips below 11,641 level in the next session, it can head to test its critical support placed around 11,591 from where some stability can be expected on the upside.

"Nifty makes a bullish Harami on the edge of its rising window. After an unusually long bearish candle, we have seen a bullish Harami being formed on the daily scale. Nifty was able to sustain its previous day low while the day's range was well within the previous candle. A bullish Harami is formed usually on the downside of a range which is a reversal pattern as it indicates exhaustion of the previous trend," said Mustafa Nadeem, CEO, Epic Research.

Market View
Analysts said the market remained volatile as investors adopted a cautious stance ahead of the US Federal Reserve's meeting that begins later on Tuesday. And on the other hand, easing crude oil prices and rising rupee turned out to be positive triggers, but concerns regarding economic growth remained an overhang.

"We maintain our cautious stance on the Indian market. The near-term movement is likely to be driven by monsoon progress (which has been delayed) as well as the global indicators. The outcome of US Fed meet (scheduled for June 18-19) will be keenly watched. Moreover, crude oil prices and rupee movement amid trade tension between US- China and US-Iran conflict is likely to keep markets volatile," Jayant Manglik, President - Retail Distribution, Religare Broking said.

"Today, market ended positive supported by ease in oil prices due to concern over the global growth, trade-war and uncertainties in upcoming OPEC meeting. There was a hope that the weakening domestic market will be supported by fiscal & monetary measures. This hope is being tested today given continuous weak economic & monsoon data. Market will be careful during the ongoing FED meeting which is expected to provide a dovish," said Vinod Nair, Head of Research, Geojit Financial Services.