Sensex fails to hold fresh all-time highs, ends flat, Nifty follows; are bears knocking D-St’s door?
Sensex and Nifty closed flat with marginal gains on Tuesday, after witnessing a volatile trading session that saw benchmark indices reach all-time highs and even trade in the red. S&P BSE Sensex closed 14 points higher 52,588 while the Nifty 50 index closed at 15,772. Maruti Suzuki India was the top gainer on Sensex, jumping more than 5%, followed by Ultratech Cement, Larsen & Toubro, and TCS. Reliance Industries along with banking and finance sectors stocks were among the laggards on the index. India VIX, the volatility index closed 2% lower. Bank Nifty ended in the red.
Deepak Jasani, Head of Retail Research, HDFC Securities –
“Indian benchmark equity indices erased intraday gains and ended on a flat note after a volatile session on June 22. Global shares extended their recovery on Tuesday, as investors focused on prospects for post-pandemic economic growth, rather than agonise more over the hawkish stance taken by the U.S. Federal Reserve at a policy meeting last week. Asia Pacific stocks were mostly up Tuesday morning, following a rebound in U.S. counterparts during the previous session. Nifty after recovering from the lows over the past two trading sessions, reversed course and lost the intraday gains on June 22. After opening gap up, the Nifty ran into resistance at around the 15900 level once again and later filled the morning upgap. 15690-15895 could be the band for the Nifty over the next few sessions even as stock specific moves (amongst lesser number of stocks) continue.”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –
“The markets got a wee bit nervous at the 15900 level and corrected from there but the trend continues to remain positive. With strong support at 15400, the Nifty seems to be headed to 16000-16100. Dips can be utilized to accumulate long positions for higher targets.”
Vinod Nair, Head of Research at Geojit Financial Services –
“During early hours, Indian market traded strongly following yesterday’s rebound in western markets which focused on economic recovery partially offsetting concerns over a possible change in Fed policy in the future. Volatility returned after main indices tested near all-time high levels, recurring weak closing of Asian & European markets and feeble futures. Falling covid infection rate along with ramping up of vaccination in India, added colours to the broad market in hopes of faster economic recovery.”
Ajit Mishra, VP – Research, Religare Broking –
“Markets retested the record high and settled marginally in the green as participants preferred to book some profit off the table. Though the index has not made any meaningful progress in this month so far, the bias is still positive. It’s difficult to make any sustainable move without banking, which is still trading sluggish. We may see further choppiness ahead due to scheduled derivatives expiry and mixed global cues. Meanwhile, traders should continue to use intermediate dips to buy quality names while keeping a check on leveraged trades.”
Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance –
“Nifty gave away most of its gains in today’s trading session and it just missed by few points to make lifetime highs. So, now on the upside 15906 remains a very crucial resistance and till those levels are not taken off there can be some consolidation in the market within this range of 15907-15500 levels. If Nifty manages to take off all-time high levels then it will zoom towards 16100/16200 levels. The daily momentum indicator MACD is in sell mode which is a concern as well in the short term. The Bank Nifty has been struggling to move above 35300 levels and till it doesn’t happen on a closing basis the wave III of wave 5 up will not resume conversely if 35300 is not taken off then downside risk is higher in Banknifty.”