Volatil­ity to re­main high

Financial Chronicle - - MONEY GAME - —Ravi Ran­jan Prasad

THE mar­ket bench­marks Sensex and Nifty50 rose sharply by 1.35 per cent and 1.5 per cent, re­spec­tively, on the back of rally in bank, NBFC stocks as the State Bank of In­dia an­nounced to buy NBFC loans in order to pro­vide liq­uid­ity. Broader mar­ket out­per­formed the bench­marks as BSE Mid-cap In­dex reg­is­tered high­est gain of 4.23 per cent, while the Small-cap In­dex gained 3.67 per cent. Ru­pee also gained 20 paise to close at 74.20 as against pre­vi­ous close at 74.39. The Sensex gained 461.42 points, or 1.35 per cent, to set­tle at 34,760.89, and the Nifty 50 In­dex gained 159.05 points, or 1.54 per cent, to set­tle at 10,460.10.

Tech­ni­cal view

Sameet Cha­van, chief an­a­lyst-Tech­ni­cal and De­riv­a­tives, An­gel Broking said, “Our mar­kets opened with a de­cent up­side gap de­spite mixed global cues and sub­se­quently, a sus­tained buy­ing was be­ing wit­nessed through­out the ses­sion to even­tu­ally con­clude the ses­sion with whop­ping gains over one and half a per cent.

“The In­dex has been gy­rat­ing around its key sup­port lev­els and since the over­all mar­ket was so deeply over­sold, a bounce back was very much on cards. Mar­ket set the plat­form in last two days by threat­en­ing traders to go long at lower lev­els and hence, con­di­tions be­came con­ducive to give such kind of sharp relief move.”

He added: “With Wed­nes­day’s gi­gan­tic move, the in­dex has closed con­vinc­ingly above the 10,400 mark and thereby un­folded fur­ther room to­wards 10,540–10,600 lev­els. On the down­side, 10,436 fol­lowed by 10,390 would be seen as im­me­di­ate sup­ports for the forth­com­ing ses­sion.”

Mar­ket view

Jayant Man­g­lik, pres­i­dent, Reli­gare Broking, said, “. Bar­ring IT, which closed in red, all the other sec­toral in­dices ended on a pos­i­tive note with auto, banks and con­sumer durables be­ing the top gain­ers. We main­tain our cau­tious view on the In­dian mar­kets in the near term, as volatil­ity is likely to re­main high. Fo­cus of mar­ket par­tic­i­pants would shift to cor­po­rate earn­ings sea­son and the do­mes­tic macro data like IIP and CPI / WPI in­fla­tion which are sched­uled over next 1-2 weeks, as it would dic­tate fur­ther course of mar­kets,” Man­g­lik said.

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