The market session ended volatile on Wednesday as key indices wiped off early gains to end with losses.
The Sensex shed 119 points or 0.33 per cent to settle at 36,034, while the Nifty 50 fell 37 points or 0.35 per cent to close at 10,793.
Both the Mid-Cap and Small-Cap indices were in the red as 982 shares rose and 1556 shares fell.
PSU oil marketing companies saw huge selling after global crude prices firmed up. HPCL, BPCL and IOCL were down over 3 per cent.
Among the sectors capital goods, auto and power were down sharply.
With the Nifty breaching its key support levels, the analysts expect top downward trend likely to continue, if it breaches the 10,583.60 level (low of Day 1 of the attempted rally).
Technical View
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said, “We had stated about 10850 being the sacrosanct level. This key support has been violated now and going ahead, we would be closely tracking how indices behave around 10770. A sustainable breach of it would lead to further correction towards 10700 or below. In the upward direction, 10840 – 10870 are the levels to watch out for.
Traders need to understand that we are typically in that sort of period when no analysis works, the market does not respect any level and hence, everyone is left clueless about the direction. In such times, it’s always better to stay light and wait for clear signal to emerge.”
Market View
Sahaj Agrawal, Kotak Securities said, “Nifty continues to trade in the broader range of 10400-11100. A breakout attempt failed and now some selling pressure in seen. Mixed activity is seen across sectors. IT continues to trade with positive bias while metal stocks consolidate. Broadly Mid-Cap stocks have failed to hold ground.
Jayant Manglik, president, Religare Broking said, “We continue to maintain a cautious stance in the near term with lack of any major positive triggers and uncertain global cues. On domestic front, investors would focus on last leg of Q3FY19 earnings season and WPI data. Further, investors would keep an eye on the progress of trade talks between US-China, behaviour of crude oil prices and fluctuation in currency. We advise investors to focus on fundamentally sound companies with strong financials and healthy prospects.”
