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  Business   Market  08 Oct 2019  Bears obstruct bullish momentum

Bears obstruct bullish momentum

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Oct 8, 2019, 1:41 am IST
Updated : Oct 8, 2019, 1:41 am IST

The broader markets also fell with BSE Small Cap Index down 0.75 per cent while BSE Mid-Cap Index fell 0.25 per cent.

Sensex closed 0.38 per cent lower at 37531.98 down by 0.38 per cent. Broader Nifty-50 Index was down 0.43 per cent or 48.35 point to 11126.40.
 Sensex closed 0.38 per cent lower at 37531.98 down by 0.38 per cent. Broader Nifty-50 Index was down 0.43 per cent or 48.35 point to 11126.40.

Benchmark indices fell sharply in the last hour of trading on sharp fall seen across the board but more predominantly in pharma, auto and financials sector stocks. Only consumer stocks bucked the trend to some extent. Sensex closed 0.38 per cent lower at 37531.98 down by 0.38 per cent. Broader Nifty-50 Index was down 0.43 per cent or 48.35 point to 11126.40.

The foreign portfolio investors were net sellers by Rs 494.21 crore, the buying by domestic institutional investors of Rs 904.82 crore even couldn’t lift market sentiments.

The broader markets also fell with BSE Small Cap Index down 0.75 per cent while BSE Mid-Cap Index fell 0.25 per cent.

Technical View

Shrikant S. Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities said, “Nifty and Sensex closed at day’s lowest levels, despite managing to surpass 11200 and 37700 respectively, in early hours of trading. It implies that the market is not having enough strength to sustain at higher levels. Advances vs declines were also on the negative side at close. By pushing Nifty below the level of 11140, bears have disturbed the bullish momentum. Based on the same, Nifty is heading for the levels of minimum 11050 and maximum could be 10850. On the higher side 11240 would be hurdle for the Index.”

Manav Chopra, Head of Research — Equity, Indiabulls Ventures said, “Nifty attempted a recovery on intraday basis but failed to hold on to the gains. Index is interestingly positioned at support levels currently. A close above 11250 will confirm a near term bottom for the Index. Since past several session index has been witnessing correction after the vertical sharp rise seen. We remain contra bullish on Nifty and will look to enter on the long side on first sign of strength. Nifty has Support at 11150-11000 and resistance at 11300-11500.”

Market View

Siddharth Khemka, head — Retail Research, Motilal Oswal Financial Services said, “Markets ended down for the sixth trading session in a row, amidst concern over more stress in the financial sector and slower economic growth. The 25 bps cut in repo rate by the RBI did not cheer investors given sharp downgrade in GDP growth forecast, as it aggravated the concerns for economic slowdown. Further FPIs continue to be net sellers on account of global slowdown and trade issues.”

Tags: nifty-50, sensex