Pace of recovery may remain slow

The Asian Age.  | Ashwin J Punnen

Business, Market

The Sensex was up 66.40 points at 39,112.74, while the Nifty ended flat at 11,691.50.

Among the sectors, except metal all other indices ended in the red.

The market ended marginally higher on a highly volatile trading session. The Sensex was up 66.40 points at 39,112.74, while the Nifty ended flat at 11,691.50. About 703 shares have advanced, 1,847 shares declined, and 119 shares are unchanged.

Among the sectors, except metal all other indices ended in the red.

The broader market underperformed the benchmarks, with the BSE Mid-Cap settling 100 points, or 0.7 per cent, lower at 14,443, while the Small-Cap tumbled 194 points, or 1.37 per cent.

After showing consolidation at the lows in the last session, the Nifty was not able to sustain the upside bounce on Wednesday, closed on a flat note.

Technical View
"We observe a bout of volatility near the resistance of 11,800 mark. Nifty failing to sustain above the key overhead resistance of 11,780-800 levels on Wednesday could open up chances of further weakness in the market ahead, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Further decisive decline below the immediate support of 11,650 could result in the Nifty filling the previous opening upside gap of 20th May around 11, analysts said.

Nifty continues to consolidate in the broad range of 11,650-12,000 with buying support at lower end of the range.

"We expect a bounce back towards 11,850-11,900 from current levels. The broader health of the market continues to remain weak and hence pace of recovery is expected to remain slow. Private banking and cement stocks are expected to lead while weakness is seen in Metal and Auto stocks," Sahaj Agrawal, Head of Derivatives, Kotak Securities said.

Market View

"Going forward, we maintain our cautious stance on the Indian markets. The near-term movement is likely to be driven by monsoon progress (which has been delayed) as well as the global indicators. The outcome of US FOMC meet on Wednesday will be keenly watched. While, the recent developments between US-China has been positive for the global markets however, the recent retaliatory tariff by India could escalate trade war tensions between US and India. This could induce volatility into the Indian markets, said Jayant Manglik, President - Retail Distribution, Religare Broking Ltd.

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