Sensex, Nifty halt Budget rally, close marginally in red; bulls exhausted now or just a brief pause?
For the first time since the Union Budget earlier this month, Sensex and Nifty have closed in the red with marginal losses. S&P BSE Sensex slipped 19 points to close at 51,329 while the 50-stock NSE Nifty ended 6 points lower at 15,109. Sensex reached an intra-day high of 51,835 but closed 506 points lower from the high. Broader markets, except Nifty Midcap 150, closed in the red. The fear gauge of domestic equity markets, India VIX, closed 1.4% higher at 24.30. Among sectoral indices only, Nifty Bank, Nifty Financial Services, and Nifty Private Bank index closed with gains.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities –
Today, again the market has managed to establish a new record high of 15257/51835, but due to profit-booking, it corrected sharply in the last hour of trade. We are of the view that the market is overstretched and last hour selling pressure indicating a strong possibility of quick intraday correction from current levels. Technically, the index has formed Hammer kind of candlestick pattern which clearly indicates indecisiveness between bulls and bears. For the next few trading session, 15250/51800 would be the key resistance level, trading below the same we can expect intraday correction up to 15000-14950/51000-50500. On the flip side, if index succeeded to trade above 15250 /51800 then uptrend continuation rally likely to continue till 15335-15365/ 52200-52500.”
Vinod Nair, Head of Research at Geojit Financial Services –
“The market failed to hold onto its upward rally to close flat due to heavy selling towards the close, mirroring the weakness seen in the European market and outflows in equity mutual funds. Most of the sectors ended hitting rough weather with auto, pharma and media stocks being the worst affected. However, banking and finance stocks were in positive territory. US markets remained firm on hopes of the additional stimulus package and swifter economic recovery continued to maintain optimism.”
Keshav Lahoti Associate Equity Analyst, Angel Broking –
“Market corrected in the last one trading hour to close flat for the day. Sectoral indices were mixed for the day. Market fundamentals and sentiments are strong to take the market to new highs. Continuous FII Inflow is very important for the rally in the market.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index has witnessed a profit booking in the last hour of the session and closed a day at 15110 with minimal loss. Going forward 15k will act as supreme support any dip near 15k mark will be again buying opportunity with keeping overall stop out levels below 15k and if index managed to hold above-said levels then again we may see some bounce in index towards 15255 odd levels which is immediate and strong hurdle on the higher side.”
Manish Shah, Founder, Niftytriggers –
“After six days of consecutive positive closes, Nifty closed the day almost unchanged. A red candle appeared at the top a spinning top. The range of the candle was average and the reading that emerges is that Nifty could be taking a pause, a breather before it decides on its future movement. The momentum remains strong but a long red candle in the final hours of the days does suggest that the bears were successful in gaining some ground. Whether it is profit taking or the emergence of new selling Nifty does show a sign that it is tiring out.”