11400 is immediate resistance to Nifty

Domestic benchmark indices Sensex and Nifty closed for the week with gains of over 0.6 per cent on mixed global and domestic cues.

Market sentiments turned positive after the US President Donald Trump signalled towards trade truce between US and China, analysts said. Trump hinted at completing part negotiation on day one.

Foreign portfolio investors turned net buyer of equities worth Rs 749.74 crore while the domestic institutions were net sellers of equities worth Rs 703.02 crore.

Sensex closed 246 points or 0.65 per cent up at 38127.08 after a volatile session, the Index dipped to a low of 37737 after opening higher at 37994.48 but later touched a high of 38345.41 before the final close. Broader Nifty-50 gained 70.50 point or 0.63 per cent closing at 11305.05.

The broader market underperformed with BSE Mid-Cap Index up 0.24 per cent and BSE Small-Cap Index up 0.38 per cent.

Technical View
Ruchit Jain, Technical Analyst-Equity, Angel Broking said, “Post the mid-week holiday, the markets witnessed a sharp surge in Wednesday’s session and with some volatility in last couple of sessions, it managed to end the week tad above the 11300 mark. On the higher side, 11400 is the immediate resistance for Nifty, but we expect it to be taken out soon and could then see a trended move in the broader markets to resume the uptrend. Above 11400, the Nifty could rally towards 11560-11630 which will be immediate target range to watch for.”

“Amongst the sectoral indices, the daily range for the Bank Nifty has widened drastically and has become extremely challenging for traders to place their bets. The key support for Bank Nifty is seen around 27,500-27,000,” Jain said.

Market View
Jimeet Modi, Founder & CEO, Samco Securities said, “Markets during the week saw a paradigm reversal of sentiments. Government’s all out efforts in striking the right cords is indeed paying off whether it being in form of increase in dearness allowance to 17 per cent, corporate tax cuts, interest rate reduction, timely tax refunds as well as nudging capital expenditure from PSUs have all reflected in the confidence of domestic bourses.”

“Steady inflows of SIP in mutual fund at around Rs. 8,200 Crs for the month of August 2019 have indeed supported to build the strength in our stock market. On the other hand, FPI data shows that outflows have also reduced nearly by half which in a way indicates that they can soon turn bullish now, given increased optimism in Indian economy,” Modi added.