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  Business   Market  26 Oct 2019  Double-top pattern favours bears

Double-top pattern favours bears

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Oct 26, 2019, 1:26 am IST
Updated : Oct 26, 2019, 1:26 am IST

The Sensex gained 11.6 per cent in Samvat 2075.

The Sensex closed with a gain of 37.67 points or 0.10 per cent at 39058.06 while the Nifty-50 closed at 11583.90, up just 1.30 point or 0.01 per cent.
 The Sensex closed with a gain of 37.67 points or 0.10 per cent at 39058.06 while the Nifty-50 closed at 11583.90, up just 1.30 point or 0.01 per cent.

Markets closed almost flat on the last trading session of Samvat 2075 amid high volatility seen through the week. The Sensex closed with a gain of 37.67 points or 0.10 per cent at 39058.06 while the Nifty-50 closed at 11583.90, up just 1.30 point or 0.01 per cent.

The Sensex gained 11.6 per cent in Samvat 2075.

 

The broader market indices too closed flat. In Samvat 2075, BSE Mid Cap and Small Cap indices lost 7 and 10 per cent, respectively.

Bank stocks rallied after SBI announced robust second quarter earnings.

Among the sectoral indices the BSE Bankex gained 1.07 per cent, Realty and Oil & Gas indices gained 0.43 and 0.41 per cent, respectively. The major laggards were the BSE Consumer Durable (-1.78 per cent), Telecom (-1.67 per cent) and Power (-0.86 per cent.)

Technical View
Mustafa Nadeem, CEO, Epic Research, said, “Nifty witnessed extre-me volatility for the week amid mixed cues and also due to some crucial earnings results this week. SBI posted decent numbers. So was Bajaj Auto, which saw a jump in net profit while Hero MotoCorp also maintained its Ebitda margin. With that, we have seen Nifty in a very tight range oscillating in 200 points range; lower levels were seen intact due to buying post-decent numbers from these blue-chips.”

 

“Technically, we have seen a double-top pattern on the daily chart which is a very reliable pattern for bears and that has its resistance at 11,740. Secondly, we have seen some consolidation near that top which implies that bulls are still trying to take it out. This is a very small range of 200 points which is very decisive. There is a divergence between Nifty and other indices such as Nifty Bank, which is underperforming and hence we are not seeing the breadth that needs to breach resistance such as this at 11,740. With Diwali ahead, and a shortened next week, we expect a range breakout as traders come back from a festive season,” Nadeem said.

 

Market View
Sanjeev Zarbade, Vice President-PCG Research, Kotak Securities, said, “While most major global markets are seen ending in the positive on better earnings numbers, Indian equities ended slightly in the red, possibly as a consolidation move after the strong gains in the earlier week.”

Tags: sensex