Market to swing to poll verdict

The market ended flat as investors turned cautious ahead of the Karnataka Assembly poll results today. The Sensex gained 20.92 points at 35,556, while the Nifty rose 0.10 points at 10,806.

The market opened higher in early trade on positive Asian cues, but stocks trimmed gains and hit intraday lows in afternoon trade.Selling was seen in mid-cap and small-cap segments. The BSE Mid-Cap Index was down 0.88 per  cent and the Small-Cap Index ended 1 per  cent lower.

The market breadth was weak as 845 shares rose and 1,827 shares fell on the BSE.

Among the sectoral indices on the BSE, Consumer Durables was down 2.5 per cent, followed by Telecom (-1.14 per cent), Industrials (-0.97 per cent) and Auto (-0.93 per cent). The Oil & Gas Index was up 0.15 per cent and the Bankex, up 0.17 per cent, outperformed the Sensex.

 

Technical view

Rajesh Palviya, head–technical & derivatives analyst, Axis Securities, said the Nifty has near-term support at 10,770 points. “Any violation of this will cause a corrective move towards the 10,730-10,700 range. A sustainable move above 10,830 will trigger a rally towards 10,860-10,900 levels."

 

Market view

Jayant Manglik, president, Religare Broking, said: “The market traded range-bound and ended on a flat note, tracking mixed cues. Initially, firm global cues triggered a positive start but the contraction in IIP data capped the upside, as the session progressed. Besides, exit poll figures for the Karnataka elections showed a mixed trend and that elevated anxiety among the participants.

“The market will react to the outcome of Karnataka elections and the immediate reaction would be on the downside in case of a hung assembly. We reiterate our view to let the markets stabilise first after the results and maintain hedged positions in the meanwhile.”

—Ashwin Punnen