Market Closing Bell: Markets remained range-bound in Monday trade with the Nifty still not able to close above the crucial 19,400 mark. It shut shop a tad below at 19,393. The Sensex too closed flat at 65,216.09 after a fairly flat session. Power and Infra were however the top gainer in trade today.
Banking and financials too clocked steady gains with the Bank Nifty closing Monday’s session at 44,002. IndusInd Bank and Axis Bank were among the top gainers in the space. The other segment that also clocked steady gains in Monday’s session included pharma and hospital stocks.
The new kid on the block, Jio Financial kick-started with a bang, up over 6 per cent but lost most of the sheen by end of the session.
Technical Outlook
“Technically, after a muted opening, the Nifty took support near the 50 day SMA (Simple Moving Average) or 19320 and reversed the trend thereafter. On daily charts, the index has formed a bullish candle and on intraday charts, and has also formed a double bottom formation. As long as the index is holding the 19,320 level, the bullish sentiment is likely to continue. Above which, the index could rally till 19,475-19,500. On the flip side, below 19,320, the uptrend would be vulnerable and could slip till 19,250-19,225,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Dollar, bond yields add to volatility
“A rebound in the global market after a significant correction prompted buying in domestic equities, particularly within the IT sector. However, the potential for volatility to linger in the near term remains due to the increasing dollar index and elevated US bond yields, fuelled by concerns about rate hikes. Investors are keenly observing the commentary from the Fed chair during its forthcoming summer conference for interest rate insights. Meanwhile, Asian markets displayed a mixed performance, reacting to the smaller-than-anticipated rate cut initiated by the Chinese central bank,” said Vinod Nair, Head of Research at Geojit Financial Services.