Taking Stock | Sensex, Nifty close lower as investors await US inflation data, FOMC meet

Investors are also awaiting the release of US inflation data and the Federal Reserve’s policy meeting on June 12.

Indian markets fell on June 10 after three consecutive sessions of gains, as investors awaited details on Prime Minister Narendra Modi’s new panel of ministers and their portfolios following yesterday’s swearing-in ceremony.

At closing, the NSE Nifty 50 Index fell 0.13 percent or 30.95 points to 23,259.20, while the BSE Sensex declined 0.27 percent or 203.28 points to 76490.08.

Investors are also awaiting  the release of US inflation data and the Federal Reserve’s policy meeting on June 12. The FOMC will update its summary of economic projections and dot plot, revealing whether or not its views align with market expectations for interest rate cuts.

Among sectoral indices, Nifty Metal was the biggest gainer (up 1.9 percent) followed by Nifty Realty and Pharma, which gained 1.3 percent and 1 percent respectively. Nifty consumer durables and healthcare were up 0.7 percent each. Among those on the losing side, the Nifty IT Index fell 1.8 percent.

Outlook for 11 June

Vinod Nair, Head of Research, Geojit Financial Services

The Indian market currently lacks fresh catalysts following the formation of the new government at the Centre, suggesting that some consolidation may occur in the near term. Institutional flows indicate a mixed trend, with FIIs gradually covering their shorts and DIIs booking profits after the market reached historic highs. Meanwhile, optimism about a rate cut is waning as US economic data points remain healthy. US Federal Reserve is expected to continue its current stance. However, any dial-back of the rate cut guided earlier could test market patience.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed narrow range activity, the Nifty ends 31 points lower while the Sensex was down by 203 points.

Among sectors, Realty, and Media indices rallied over 1 percent whereas IT index was the top loser by shedding 1.84  percent. Technically, after a positive opening entire day the market hovered between 23,230 to 23,400/76,400-77,000. Intraday range bound activity  and small bearish candle on daily charts  after a strong rally indicates indecisiveness between the bulls and bears. For the day traders now, 23,400/77,000 would be the immediate resistance level. As long as the market is trading below the same, the correction formation  is likely to continue. Below the same, the market could slip till 23,100-23,025/76,100-76,000. On the flip side, post 23,400/77,000 breakout the index could move up to 23,500-23,520/77,300-77,400. Contra traders can take long bet near 23,025/76,000 with strict 30/100 points stop loss.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

Nifty opened gap up and consolidated for the day to close in the red down ~50 points. On the daily charts, we can observe that the Nifty touched a new all-time high of 23,412. The Nifty has witnessed a 2,100-point rally from last week. The hourly momentum indicator has triggered a negative crossover suggesting loss of momentum. Hence, there can be some consolidation in the near term and the Nifty is likely to drift towards 23,160 – 23,100 over the next couple of trading sessions failing to sustain can lead to a fall to 22,930. On the upside, 23,420 – 23,500 is the immediate hurdle zone.

Bank Nifty witnessed continuation of the pullback and however it faced resistance at the 50,250 mark which coincides with 78.6% retracement mark. Thus, the sharp rally seems to be running out of steam and now is poised for consolidation in the near term. Crucial support 49,320 – 49,070 while immediate hurdle is placed at 50,250 – 50350.