Investors will look to global cues for direction

After making major moves in the intra-day trade, the market ended with moderate gains. While the Sensex, which was tracking Asian markets, rose as much as 368 points in intra-day trade but investors booked profits at higher levels. While Sensex closed with 52 points gains at 37,402, the broader Nifty ended 6 points higher at 11,053, much lower than its day’s high of 11,146.

On the BSE, 1,268 shares rose and 1,212 shares fell. The BSE Mid-Cap index rose 0.20 per cent, while BSE Small-Cap index gained 0.51 per cent.

Axis Bank (up 1.40 per cent), Larsen & Toubro (up 1.30 per cent), Reliance Industries (up 1.15 per cent) and ICICI Bank (up 1.01 per cent) were the major gainers. Yes Bank (down 3.46 per cent), Power Grid Corporation of India (down 1.96 per cent), ONGC (down 1.48 per cent) and SBI (down 1.46 per cent) were the major losers.

Pharma stocks outperformed today with NSE Pharma index rising 0.75 per cent. Sun Pharma ended 2.5 per cent higher today after the company signed a long-term licensing deal to develop generic products in China. Glenmark and Dr Reddy’s were among the other gainers in pharma pack.

There are expectations that the government may soon announce a stimulus package to stall the slowdown

The rupee also failed to sustain gains and was at 71.41 against US dollar in late trade.

After showing a lower levels recovery in the last couple of sessions, the Nifty moved up today, but was not able to sustain the gains and showed consolidation. A small negative candle was formed today with upper shadow.

“Technically, this pattern indicates an emergence of selling pressure at the highs. The key overhead resistance of 11,125-150 levels (resistance as per the concept of change in polarity) has been tested today and the Nifty was not able to sustain the highs, after moving above it as per intraday.

The short term trend of Nifty is positive amidst a range movement. A sustainable move above 11,150 levels is expected to have further positive impact on the market, Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Investors are expecting the government is announce stimulus to boost economy which can reverse the markets in the short term,

“Global trade optimism and rebound in IT & Pharma stocks provided an initial push to the market but the bulls failed to maintain the momentum due to absence of earnings growth. Industries are facing the heat of slowdown while the market is expecting a solid intervention by government to revive the economy, until such announcements volatility may continue,” Vinod Nair, Head of Research, Geojit Financial Services Ltd.