Following a rangebound trading session, BSE Sensex and Nifty ended near the flatline on Monday, ahead of IIP and CPI inflation data announcement. After seeing a gap-up opening, the 30-share Sensex hit a day’s high of 52,700. During the afternoon session, it tumbled 500 points from day’s high. After recovering some losess, it ended at 52,373, down 327 pts from high point. While Nifty index ended below 15,700, up just 3 points. Broader markets outperformed the equity benchmarks, with BSE Midcap index rising 91 points or 0.4 per cent to 22,905. BSE Smallcap index gained 0.75 per cent or 194 points to end at 26,068. India VIX gained 0.4 per cent to finish just shy of 13 levels.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The choppy trend continued in the market and there is no respite for bulls, after showing upside bounce from the lower support (15635) in previous session. As long as the support holds, the odds of market bounce back remain alive for the next 1-2 sessions. A decisive move below the support is likely to extend weakness to 15500 levels. On the upside bounce, the area of 15800 could be a crucial resistance to be watched.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index is struggling! It is unable to sustain at higher levels and hence makes a U-turn at any given instance. We are still stuck in a range which is between 15400 and 15900. Unless either level is not taken out, we will not see a meaningful move.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty has been in a range between 15900 and 15600 during the entire month, with today’s selloff, Nifty is challenging the bottom range of 15600, until this support breaks I don’t think there is any reason to worry. I am expecting Nifty to take support here and offer a bounce back to the 15900 levels, this is a high probability scenario and I would position my trades with this view.
Ajit Mishra, VP – Research, Religare Broking
Markets will react to the macroeconomic data viz. IIP and CPI inflation in early trade on Tuesday i.e. July 13. The tussle over the next directional move in the index is still on and upcoming earnings announcement may result in the probable breakout. Meanwhile, we suggest continuing with a selective trading approach while keeping a check on leveraged positions.
Vinod Nair, Head of Research at Geojit Financial Services
Domestic indices started with mild gains hovering around the flat line, however, it trimmed early gains tracking cues from its European peers ahead of the release of key inflation data later today. Shares of small finance banks were in focus today as the RBI allowed the reverse merger with their respective promoter entities. The realty stocks rallied as hopes of demand revival boosted the sector’s outlook.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the nifty50 index slipped below Middle Bollinger Band formation & 21-days SMA, which indicates a bearish move in the counter for the near term. Moreover, an indicator MACD & Stochastic is showing a negative crossover on the daily chart, which suggests weakness in the index for the upcoming days. At present, the nifty seems to have resistance at the 15800 levels while immediate support comes at 15550 levels.