Equity Markets managed to close in green after witnessing a last hour sell-off which erased most of the initial gains. SENSEX closed at 40,357 with gains of just 70 points (+0.17%), while Nifty50 ended at 11895 up 23 points (+0.20%). Sectorally, Banks, Telecom, Pharma and Infra closed positively while Auto, Energy, IT and FMCG closed negatively. Market got hopeful post comment from a senior US official that the US and China are getting close to an interim trade pact. Telecom stocks rose today amid reports that the government is mulling putting a minimum price for calls and data. PSU banks also rallied after the Supreme Court delivered its verdict in the Essar Steel case. The apex court has set aside the NCLAT judgment, saying the ultimate discretion on distribution of funds is with the Committee of Creditors (CoC) which is completely favourable to lenders.
Market sentiment has turned somewhat negative post weak macroeconomic releases this week. GDP data is also likely to be released by the end of the month which is expected to go below 5%. Thus, going ahead, market would watch out for GDP number and further development on the US-China trade deal.
Technically Nifty formed a Doji candle with long upper shadow on daily scale which indicates absence of follow up buying interest at higher zones. It formed Doji candle for second consecutive week, indicating indecisiveness among the market participants. Nifty retested the breakdown trend line on intraday scale and corrected sharply which is restricting it upside momentum. Now it has to hold above 11850 levels to witness an up move towards 11950 then 12000 zones while on the downside major supports is seen at 11780 levels.
Above views are of the author and not of the website kindly read disclaimer