Saturday, Apr 27, 2024 | Last Update : 07:59 AM IST
Medium-term support seen in 11100 to 11300 range
The Sensex lost 155 points to end at 38667 while Nifty settled 0.3 per cent lower at 11477.
After two week rally, the market end in red, dragged down by banking, auto, metal and pharma shares.
The Sensex lost 155 points to end at 38667 while Nifty settled 0.3 per cent lower at 11477.
The Sensex fell 421.48 points to hit 38401.09 at the weakest level of the session.
Technical Outlook
“Nifty yet again bounced back sharply from our mentioned support of 11400. Near term, traders should look to remain long on the Index with a stop below 11400. Till this support is protected on the downside expect the Index to consolidate between 11400-11700 as mentioned earlier. Index is witnessing a phase of consolidation of its recent near-vertical up-move. Undertone continues to remain bullish overall. Above 11700 index is likely to head towards 12000 zone,” Amit Shah, Technical Research Analyst with Indiabulls Ventures said.
Bears tried hard to push the market down to break psychological level at 11381.90, but failed and has resulted into strong short covering recovery towards the end, analysts said.
However, breadth indicator, Advance vs Decline ratio closed on bearish note at 1:30 P.M. Nifty closed little lower at 11474 or down by 38 points, while Sensex erased 155 point and closed at 38667. The market was down because of sustained weakness in weak companies like India Bull Housing, Yes Bank, DHFL and RBL Bank. Few debt ridden companies like ZEEL, IRB Infra aMnd Rel Infra were also down and has damaged the sentiments. On Tuesday, it would be mandatory for the market to break the level of 11540 to rally further, however, in the absence of that, we could see one more round of weakness in the market, they further said.
Market Outlook
Vinod Nair, Head of Research, Geojit Financial said, "Having factored the kneejerk benefit from corporate rate cut, market is consolidating based on setbacks in weakening financial & economic progress. We feel that 11,100 to 11,300 will be a strong support for Nifty50 in the near to medium-term, which can develop going forward based on sustainability of post festival demand.”
