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  Business   Market  16 Jul 2019  Underlying trend stays subdued

Underlying trend stays subdued

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : Jul 16, 2019, 2:04 am IST
Updated : Jul 16, 2019, 2:04 am IST

The upper area of 11625-650 levels is going to be a strong overhead resistance for the market ahead.

The market ended in positive territory on Monday with the Sensex gaining 160 points, or 0.41 per cent, higher at 38897 levels and the Nifty closed 36 points, or 0.31 per cent, higher at 11588 levels.
 The market ended in positive territory on Monday with the Sensex gaining 160 points, or 0.41 per cent, higher at 38897 levels and the Nifty closed 36 points, or 0.31 per cent, higher at 11588 levels.

The market ended in positive territory on Monday with the Sensex gaining 160 points, or 0.41 per cent, higher at 38897 levels and the Nifty closed 36 points, or 0.31 per cent, higher at 11588 levels. However, the broad market saw selling with both BSE Mid-Cap and Small-Cap closing in the red.

Technical View

The Nifty continued to show range movement and closed the day on a small positive note. A small body of negative candle was formed with long lower shadow. Tech-nically, this pattern indicates a range bound movement in the market with positive bias, analysts said.

"The Nifty currently shows a gradual upmove amidst a range in a choppy trend in the last five sessions. This strength of an upside bounce compared to previous sharp weakness (long range bear candle) of 5th and 8th July possibly signals a 'dead cat bounce' in the market," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

"The underlying trend remains subdued for the market. The upper area of 11625-650 levels is going to be a strong overhead resistance for the market ahead. Failure to sustain above 11650 could result in a sharp reversal on the downside," he further said.

"The Nifty closed in the positive territory in the last trading session and the hourly momentum indicator is absolutely in buy mode. The Lower end of the range is pegged at 11400 levels whereas the upper end of the range is 11650, hence it is stuck in a range of 11650-11400, so whichever side it breaks it will lead to another 250 points move thereafter," Jay Thakkar, CMT — Head Technical and Derivatives Research — AVP Equity Research, Anand Rathi Shares said.

Market View

"We reiterate our bearish view on the Nifty and suggest continuing with "sell on rise" approach. Stocks, on the other hand, may continue to witness volatile swings across the board thus we suggest keeping extra caution in stock selection and trade management. On sectoral front, banking and FMCG could lead the fall," Ajit Mishra Vice President, Research, Religare Broking Ltd said.

Tags: sensex, fmcg, religare