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  Business   Market  15 May 2019  Nifty closes below its intermediate hurdle

Nifty closes below its intermediate hurdle

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : May 15, 2019, 1:40 am IST
Updated : May 15, 2019, 1:40 am IST

In the Nifty 50 basket of shares 34 ended higher while 16 closed lower.

The BSE Sensex ended 0.61 per cent or 228 points higher to close at 37,319, while the Nifty 50 gained 0.66 per cent or 74 points to close at 11,222.
 The BSE Sensex ended 0.61 per cent or 228 points higher to close at 37,319, while the Nifty 50 gained 0.66 per cent or 74 points to close at 11,222.

The domestic market snapped the nine-day losing streak as heavyweights like Reliance Industries, ITC, Larsen & Toubro, State Bank of India and ICICI Bank made strong gains on Tuesday.

The BSE Sensex ended 0.61 per cent or 228 points higher to close at 37,319, while the Nifty 50 gained 0.66 per cent or 74 points to close at 11,222.

 

The sectors like energy, banking, oil & gas and telecom saw good amount of buying interest helping the Sensex rise as much as 617 points from day's lowest level to hit intraday high of 37,573 and the NSE Nifty 50 Index moved close to its psychological level of 11,300.

Seventeen of 19 sectorial indices ended higher led by the BSE telecom index's 2.8 per cent gain. Healthcare, energy, industrials, utilities, capital goods and oil & gas also rose between 1 and 1.7 per cent each.Selling was seen in IT stocks as S&P BSE information technology index was the top loser, down 1.2 per cent.

Mid- and Small-Cap shares also witnessed buying interest as the S&P BSE Mid-Cap Index rose 0.6 per cent and the Small-Cap Index advanced 0.3 per cent.

 

In the Nifty 50 basket of shares 34 ended higher while 16 closed lower.

Indiabulls Housing. Bharti Airtel, Sun Pharma, Vedanta, GAIL India, IndusInd Bank, State Bank of India, Reliance Industries, Eicher Motors and Tata Motors were among the top gainers, while Tech Mahindra, Bajaj Finance, TCS, HCL Tech, Wipro, Bajaj Auto, Infosys and Asian Paints were among the laggards. The overall market breadth was neutral as 1,219 shares ended lower while 1,288 closed higher on the BSE.

Technical View

"The Nifty managed to recover most of the losses of last session, but closed below its immediate hurdle at 11,250. Now it has to negate the formation of lower highs and lows by holding above 11,250 to witness an upward move towards 11,333 and then 11,350 zones, while on the downside, support exists at 11,180 and then 11,020 levels," said Chandan Taparia, Technical & Derivative Analyst, MOFSL.

 

According to analysts, Tuesday was the day of massive change in mood from extreme fear to greed, which was marked by a V-shaped recovery post mid-session. Such rallies confirm that the market has assimilated the fact that Trade wars are here to stay, although the long-term impact can dent some of Indian corporate's profitability but in the short term not much damage will be done to stock prices.

Market View

"Now since the market has stabilized, the next big thing would be wild swings on the day of exit polls and on the day of the actual result announcement. Indian markets seem to have sensibly responded to the trade spat between US and China and hopefully this too shall pass. Investors should buy quality companies on such panic selling days. Volatility is harmful for average traders and therefore they should avoid trading till volatility calms down. A perfect example depicting volatility would be the Nifty PSU banking index which fell around 5 per cent on Monday but Tuesday was over 3 per cent," said Umesh Mehta, Head of Research, Samco Securities Ltd.

 

Tags: bse sensex, reliance industries, itc