The Nifty50 hit a fresh record high of 15,915 on Monday but failed to close in the green, tracking muted trend seen in other Asian markets amid a spike in COVID cases across Asia.
Asian and European markets fell after a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs, said a Reuters report.
Back home, the S&P BSE Sensex saw a cut of about 200 points while the Nifty50 failed to hold on to 15,900, but closed above 15,800 levels on a closing basis which is a positive sign.
Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 189 points to 52,735 while the Nifty50 closed lower by 0.3 percent to 15,814.
"After opening at a record high, the domestic markets slipped into the negative zone tracking cues from global peers due to spike in COVID cases across Asia. PSU Banks were in focus in anticipation of progress in privatisation,” Vinod Nair, Head of Research at Geojit Financial Services said.
“The market got volatile in the closing hour, ahead of & during the FM announcement, though it was focused on the COVID-19 relief package mainly for healthcare and stressed sectors, which will benefit the broad economy,” he said.
Sectorally, buying interest was seen in metals, healthcare, and infra stocks while profit booking was seen in energy, capital goods, IT, and telecom space.
On the broader market front – the S&P BSE Mid-cap index rose 0.4 percent, and the S&P BSE Small-cap index rose 0.46 percent – outperforming the benchmark index.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 57,527.10 | -398.18 | -0.69% |
| Nifty 50 | 16,945.05 | -131.85 | -0.77% |
| Nifty Bank | 39,395.35 | -221.55 | -0.56% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Cipla | 877.25 | 8.15 | +0.94% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Finserv | 1,240.65 | -49.35 | -3.83% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 11755.35 | -25.55 | -0.22% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5372.90 | -124.95 | -2.27% |
The Nifty50 closed above 15,800 levels which is a positive sign, but in case, the index fails to hold above this crucial level then further selling pressure could be in the offing. In the past we well, we have seen the index getting support at lower levels. Stay put and buy on dips would be the right approach, suggest experts.
Here’s what experts suggest investors should do on June 29:
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services
The Nifty50 index formed a Bearish candle and a Bearish Belt Hold sort of candle which indicates that follow-up is required to commence the next leg of the rally.
Now, the index has to hold above 15,800 zones to witness an up move towards 16,000 and 16,200 zone while on the downside, support can be seen at 15,700 and 15,600 zone.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty, with a gap-up opening, attempted to cross the swing high of 15,901 as well as the daily upper Bollinger Band. However, the index couldn’t sustain in the higher territory, and had a minor degree correction.
On the downside, the selling pressure was absorbed near the key hourly moving averages. The overall structure shows that the index is still in the trading range; however, the bulls are warming up to kick start the next leg up.
Monday’s high of 15,915 will now be the key hurdle. Once that gets taken out then the index will be considered to have started the next leg up.
In that case, the Nifty will be set to push through the 16,000-mark and head towards 16,400 subsequently. On the other hand, 15,800-15,750 will act as an immediate support zone with the key short-term support at the swing low of 15,673.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Technically, the market made a fresh high but failed to sustain above the 15,900/ 53,100 level on Monday. However, on the intraday charts, the index still maintains a higher bottom series formation which is broadly positive for the market.
We are of the view that, as long as the Nifty/ Sensex is trading above 15,750 /52,550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15,900- 15,950/ 53,100-53,500.
On the flip side, below 15,750/ 52,550 would increase further weakness up to 15,700-15,660/ 52,000-51,700. Among sectors, the metal stocks continue the positive momentum and strong buying was seen in PSU Banks. Intraday profit booking was seen in HDFC Life and selective IT stocks.
Rohit Singre, Senior Technical Analyst at LKP Securities.
The Nifty50 index has witnessed strong resistance at 15,900 zone which means going forwards also 15,900 will act as a strong hurdle.
As long as we don’t see a decisive close above 15,900 zone we may not see an aggressive northward move, support are coming near 15,775-15,675 zone below said levels we may see some more pressure in an index.
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