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  Business   Market  23 Jul 2019  Breach of 11300 would extend correction

Breach of 11300 would extend correction

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Jul 23, 2019, 1:11 am IST
Updated : Jul 23, 2019, 1:11 am IST

Sensex and Nifty-50 closed at two-month lows, as selling in the market continued for the third consecutive session.

The broader market too displayed weakness as the BSE Mid-cap Index fell 0.60 per cent while the Small-cap index fell 1.15 per cent.
 The broader market too displayed weakness as the BSE Mid-cap Index fell 0.60 per cent while the Small-cap index fell 1.15 per cent.

Sensex and Nifty-50 closed at two-month lows, as selling in the market continued for the third consecutive session. The Sensex opened lower at 38,333.52 and due to selling pressure dipped below the crucial 38,000 level to 37,890.32 as the index fell more than 400 points intra-day.

There was some recovery as the index finally managed to close above 38,000 at 38,031.13 down 305.88 points or -0.80 per cent. Nifty-50 index closed at 11,346.20 down 73.05 points or 0.64 per cent, earlier it fell to a low of 11,301.25 in intra-day trade.

The broader market too displayed weakness as the BSE Mid-cap Index fell 0.60 per cent while the Small-cap index fell 1.15 per cent.

The sectoral indices closed mixed. The top losers were the BSE Bankex (-1.42 per cent), FMCG (-1.43 per cent), Consumer Durables (-0.62 per cent) and Capital Goods (-0.38 per cent). The Nifty Bank fell 1.63 per cent.

The FPIs were net sellers of equities worth Rs 1,916.91 crore while the domestic institutions made net buying of Rs 1,829.90 crore as per the provisional data.

Technical View
Sameet Chavan, Analyst-Technical and Deriva-tives, Angel Broking, said, “Last week’s mayhem continued as we saw a gap-down opening followed by sustained selling throughout the first half. This selloff was disheartening because the stable propositions like HDFC twins and Kotak Bank also finally succumbed to the broader market destruction.

“These marquee names have been reluctant to correct since many months and in fact, have propelled the index to the record highs. But today, they looked completely dejected and hence, this correction reinforced to test the 11300-mark. Fortunately, the selling got arrested in the latter half and we had a small bounce back to eventually close around 11,350.”

“Till the time we are below 11650–11700, intermediate rebounds should only be treated as short-term relief. On the flip side, a sustainable breach of 11300 would extend this correction towards 11200–11108 levels,” Chavan said.

Market View
Rajiv Singh, CEO, Karvy Stock Broking, said, “The market has been falling since the Budget day as FIIs have started selling after the "super rich tax" was announ-ced...Monday’s fall was caused by follow on selling by FPIs in the index heavyweights besides weak global cues. The market is also bracing for a disappointment, which may be caused by  25 bps rate cut by the US Fed as against the earlier expectation of 50 bps cut.”

Tags: sensex news, nifty-50