Nifty closes with a negative bias

The market ended flat in a highly choppy trading session. The Sensex settled 26.31 points, or 0.07 per cent higher, while the Nifty 50 Index rose 1.05 points, or 0.01 per cent, to settle at 10,948.30, its highest closing level since 1 February 2018. Broader market saw selling pressure as the BSE Mid-Cap Index was down 0.67 per cent. The Small-Cap Index fell 0.33 per cent. Both these indices underperformed the Sensex.

Among the sectoral indices on the BSE, mainly   IT (2.38 per cent), Tech (1.94 per cent), Energy (up 0.12 per cent), FMCG (0.43 per cent) and Realty (0.55 per cent) outperformed the Sensex.

Technical view

Jay Thakkar, CMT, head, technical and derivatives research, AVP equity research, Anand Rathi Shares and Stock Brokers, said: “The Nifty closed in the negative territory in the last trading session. It has formed a Doji candlestick pattern—it has closed almost flat with a negative bias—which indicates indecisiveness among the market participants. On the upside, 11,000 is an immediate resistance whereas the support on the lower side is pegged at 10,870 levels. The Index has provided a breakout from the triangular pattern with a buy crossover in its momentum indicator MACD on the daily charts from the zero reference line, which is also quite positive.

Market view

Jayant Manglik, president, Religare Broking, said: “After a smart upmove over the last two sessions, the Indian markets took a breather with the equity benchmark indices registering a flat closing amidst intraday volatility. The escalating trade tensions between US & China dampened the sentiments and capped the market upside. Globally, both the European and Asian indices traded sharply in the red.

“Some consolidation cannot be ruled out in the coming sessions. Key domestic macro events like May IIP, June CPI inflation data and corporate earnings season will provide further direction to the markets in the near term. Stock/sector specific volatility will remain high. The progress of monsoon, movement of crude oil prices and global developments will continue to be monitored by the market participants. The rising trade tensions between US & China could induce high volatility across the indices globally. Traders should avoid risky leveraged positions.”

Ashwin J Punnen