Nifty needs to sustain above 12000 for further rise
The market which had opened in the green on rate cut hopes, tumbled after the monetary policy announcement.
The market ended lower after a volatile trading day on Thursday as the RBI left interest rates unchanged amid slowing growth.
The market which had opened in the green on rate cut hopes, tumbled after the monetary policy announcement.
Trading sentiment was further dampened after the RBI cut its GDP growth forecast to 5 per cent for 2019-20 from the earlier estimate of 6.1 per cent.
After swinging between gains and losses, the Sensex ended 70.70 points or 0.17 per cent lower at 40779, while Nifty settled with a loss of 24.80 points or 0.21 per cent at 12018.40.
Technical View
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking, said, “Thursday’s intraday correction was quite evident after such unexpected outcome, but fortunately the impact was not as severe as it’s generally seen after a disappointment. That’s a sign of a strong uptrend and going ahead, we continue to remain upbeat on the market as long as the sacrosanct support zone of 11930 - 11883 remains intact. On the upside, 12080 - 12120 are the immediate levels to watch out for. Traders are advised to be with the larger trend and should ideally refrain from taking contradictory bets against the major direction on a positional basis.”
“Technically, Nifty took support around its psychological support of 12000 mark and formed a red body candle on daily chart. At current juncture, it is hovering around lower end of the channel and 20 EMA on daily chart. Going forward, Nifty need to sustain above 12000 zones to witness an up move towards 12158 then 12250 levels. On the flipside, strong support for Nifty is placed at 11935-11950,” said Siddhartha Khemka, Head — Retail Research, Motilal Oswal Financial.
Market View
Dhiraj Relli, MD & CEO, HDFC Securities, said, “Though the stock market participants could be disappointed by the no-repo-rate-cut action, we think that the participants are mature enough to understand the prudence of the Central Bank which means that the markets may not react downwards sharply due to this disappointment.”