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  Business   Market  29 Jun 2019  Nifty poised for sideways movements

Nifty poised for sideways movements

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : Jun 29, 2019, 2:06 am IST
Updated : Jun 29, 2019, 2:06 am IST

The Nifty-50 fell 53 points, or 0.45 per cent to 11,789.

The market breadth remained in favour of sellers, with 919 stocks declined and 822 advanced on the NSE.
 The market breadth remained in favour of sellers, with 919 stocks declined and 822 advanced on the NSE.

The market erased their early gains on Friday to close in the red, with the Sensex ending 192 points, or 0.48 per cent lower at 39,394.

The Nifty-50 fell 53 points, or 0.45 per cent to 11,789. The market breadth remained in favour of sellers, with 919 stocks declined and 822 advanced on the NSE.

On a weekly basis, however, the indices gained with the Sensex closing 0.5 per cent higher and the Nifty climbing 0.6 per cent. Among the Nifty sectoral indices, only three closed the day in the green.

In the broader market, the BSE Mid-Cap Index settled 45 points, or 0.3 per cent, lower at 14,808, while the BSE Small-Cap Index lost 10 points, or 0.07 per cent, to 14,239.

Technical View
"As per price action, the Nifty was pretty much within the range that we have seen in the previous week and managed to recover the losses marginally. Since it was the monthly expiry week, we have seen writers eating away the premium. As per derivatives data, Nifty managed to have rollovers of 80 per cent which is above its 3 months average," said Mustafa Nadeem, CEO, Epic Research.

"Technically, we have seen some contraction in MACD Hist which indicates there may be some sideways consolidation in the coming week," he added.

"The Nifty as per weekly time frame chart formed a small positive candle with upper and lower shadow. Technically, this pattern could be considered as a high wave type pattern, which is currently placed at the crucial support of 11,650 levels (upper area of opening upside gap of 20th May). The short term trend of Nifty remains range bound. We could expect further weakness in the early part of the next week, but likely to see buying emerging from near the support of 11,700-11,650 again," Nagaraj Shetti, Senior Technical & Derivative Analyst said.

Market View
Renewed hopes of possible reconciliation of US-China trade dispute helped the market to start this week on firm note. Additionally, dovish comments from global central banks and expectation of stimulus package given slowdown in domestic economy added to the positives.

"A board-based buying was seen, as market was trading in over sold region with Nifty getting support near 11,600 levels. Metals also inched higher due to ease in trade-war tensions. PSBs gained as credit growth has picked up recently and provisioning related to NPA has reduced. While, Pharma gained on account expectation of marginal improvement in outlook," said Vinod Nair, Head of Research, Geojit Financial Services.

Tags: sensex updates, nifty-50