Dalal Street Corner: Market closes lower ahead of TCS q4 result, US inflation data; what should investors do on Tuesday?
The domestic equity market ended lower on Monday ahead of the release of US inflation data, q4 earnings, including TCS March quarter results, and ECB meeting outcome.
The domestic equity market ended lower on Monday ahead of the release of US inflation data, q4 earnings, including TCS March quarter results, and ECB meeting outcome. Benchmarks Nifty50 and the S&P BSE Sensex corrected 0.6% and 0.8% to settle at 17,674.95 and 58,964.57 respectively as weak global cues weighed on the domestic equity market.
In the broader market, Nifty midcap closed with 0.36% gains, while small cap index ended marginally lower by 0.6% as India VIX closed above 18-mark
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The crucial 12-share Nifty Bank dipped nearly 150 points as the banking index closed near 37,600.
Sectorally, IT stocks, banking and financial stocks witnessed massive sell-off, while buying interest was seen in Realty, oil & gas and media themes amid volatility.
As stock markets started holiday-truncated week on a negative note, here is what stock market experts have to say about the current trends in the market and factors and levels to watch out for going forward.
Vinod Nair, Head of Research at Geojit Financial Services.
The market is wary ahead of the ECB meeting, the release of US inflation data, and the start of the domestic Q4 result season. Indian IT sector dragged due to weak result expectations on a QoQ basis. In this shortened week, the market is cautious as trading at the upper side of the trend and momentum has shifted from broad to stock-specific.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
After the recent decline in the last week, the Nifty had taken support near the lower end of a reverse rising channel, where it had formed a bullish outside bar on the daily chart on April 8. The index continued to consolidate near the lower channel line on April 11, and ultimately formed an Inside bar on the daily chart.
This makes the boundaries of the outside bari.e. 17600 & 17842 crucial support & resistance respectively. Overall, the short-term range for the Nifty is expected to be 17500-18000. Within this range, any dip towards 17600-17500 can be taken as a fresh buying opportunity from a short-term trading perspective. On the higher side, 18000-18100 is expected to act as a cap for the short term
Ajit Mishra, VP - Research, Religare Broking Ltd.
Markets started the week on a feeble note following weak global cues and lost over half a percent. After a muted opening, the benchmark continued to trade in a small range, however, the bias was on the negative side. Amid all, sectoral indices traded mixed wherein selling pressure in the IT heavyweights and select index majors from the banking and financials space dented sentiment. However, movement on the broader front kept the participants busy till the end. Consequently, the Nifty ended lower by 0.6% to close at 17,674.95 levels.
Markets will react to TCS numbers in the early trade on Tuesday i.e. on April 12. Besides, cues from the global markets will also be in focus. On the index front, the Nifty has been witnessing consolidation on the expected lines and a break below 17,600 could push the index further lower towards 17,400. Meanwhile, participants should continue with a cautious approach and stick with the stock-specific trading approach.
Rupak De, Senior Technical Analyst at LKP Securities
The market remained sideward throughout the session as the benchmark Nifty failed to give a directional move. On the higher end, the index found resistance around the previous closing on the daily chart. However, Nifty on the daily chart has formed an inside day bar which suggests indecisiveness. On the lower end, support is visible at 17600/17400. On the higher end, the resistance is seen at 17800.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
The fight between the bulls and bears continued in the Bank Nifty index and a breakout above 38000 will confirm the up move. The lower end of the 37000-36800 zone will act as a cushion and a decisive break below this will only lead to further selling pressure.
Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.
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