Wednesday, May 22, 2019 | Last Update : 04:57 AM IST

V-shaped recovery is quite encouraging

THE ASIAN AGE. | ASHWIN PUNNEN
Published : Feb 27, 2019, 1:39 am IST
Updated : Feb 27, 2019, 1:39 am IST

Both Mid-Cap index and Small-Cap indices ended in the red.

The Sensex fell 239 points, or 0.66 per cent, to settle at 35,973, the Nifty 50 index fell 44.80 points, or 0.41 per cent, to settle at 10,835.
 The Sensex fell 239 points, or 0.66 per cent, to settle at 35,973, the Nifty 50 index fell 44.80 points, or 0.41 per cent, to settle at 10,835.

The market ended with modest losses after a volatile session amid rising geopolitical concerns. The Sensex fell 239 points, or 0.66 per cent, to settle at 35,973, the Nifty 50 index fell 44.80 points, or 0.41 per cent, to settle at 10,835.

Both Mid-Cap index and Small-Cap indices ended in the red.

Major Sensex losers were HDFC (-2.18 per cent), ICICI Bank (-2.08 per cent), Infosys (-1.75 per cent), State Bank of India (-1.44 per cent), Hero MotoCorp (-1.15 per cent) and Reliance Industries (-1.01 per cent).

Tata Motors (4.07 per cent) Coal India (2.82 per cent), TCS (2.39 per cent) and Axis Bank (0.87 per cent) were the major Sensex gainers.

Sectors like auto, oil & gas and metal saw buying interest, while realty, banks and capital goods witnessed selling pressure.

Technical View
Sameet Chavan, Chief Analyst-Technical & Derivatives, Angel Broking, said: “Now, due to Tuesday’s wild swings, we can see a defined range at least for the next couple of days. On the upside, 10890 is the level to watch out for, as we may see the index extending the relief rally towards 10950–11000 after surpassing this hurdle. On the flip side, 10800 followed by 10729 would now be seen as key support levels. It’s advisable not to trade aggressively if index remains within this range.

“We must accept the fact, although we can see the index closing in the red on Tuesday, the V-shaped recovery from lower levels was quite encouraging. In fact, there were plenty of individual stocks that had a remarkable day and hence, it’s advisable to keep focusing on such potential targets.”

Debabrata Bhattacharjee, Head of Research, CapitalAim, said: “Tuesday’s gap-down opening and surge from deeper levels shows that the bulls are well-established and are in full control. The Nifty benchmark index climbed for the fourth day in a row to move above 50-day and 100-day moving averages. Bullish candles surpassed key moving averages and support for the index shifted to the higher side. Even after opening in a bear mode it recovered from bottom levels.”

Market View
Vinod Nair, Head of Research, Geojit Financial Services Ltd., said: "Despite fear of escalation in geopolitical tensions, the market recouped some losses and stayed range-bound for further cues from both countries. The rupee weakened as investors haven’t ruled out the possibility of heightened tension. Market movement is likely to be cautious until further clarity over cross border threat.

Tags: sensex news, nifty