Sensex, Nifty 50 end flat ahead of RIL’s earning; IT, FMCG shines

The Nifty 50 closed 0.40 points lower to 17,624.05, while the S&P BSE Sensex rose 0.04 per cent to 59,655.06. Both indexes lost over 1% this week. Nine of the 15 major Nifty sectoral indices ended in the red in today’s session.

With most sectors ending in the red, realty, metal, auto and PSU Bank dragged the most in today’s session. Media shined with IT, Pharma and FMCG too ending in the green.

From the Sensex pack, ITC, TCS, Wipro, Asian Paints and HCL Tech were the top performers, rising 1-2%. HDFC, Kotak Bank, Infosys and Bajaj Finance also closed higher.

On the other hand, Tech Mahindra, Maruti, Tata Steel, UltraTech Cement, Bajaj Finserv and Tata Motors also closed in the red.

From the Nifty pack, 24 indices advanced, while 26 declined.

From the Nifty pack, ITC, TCS, Britannia, Wipro, Cipla advanced while HDFCLife Tech Mahindra, Adani Enterprise, SBI Life, and Tata Steel were biggest losers.

IT stocks , which gained 0.69% on Friday, lost 5.39% for the week, following weak results from Tata Consultancy Services Ltd and Infosys Ltd.

“Markets struggled for direction in a lackluster and uninspiring session amidst looming fears of economic recession following hawkish signals from the US Fed. Risk aversion was again the preferred theme. The only positive takeaway was that ITC gained around 2% and most importantly, surpassed HDFC’s m-cap to become the 7th most-valued listed company. Markets are likely to trade volatile and choppy with biggest support for Nifty seen at 17443, while major hurdles seen at 17863 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“The Nifty opened on a flat note and witnessed volatile trading action within a narrow range. It continued to trade within the broad range of 17500 – 17860. During the day the Nifty broke below 17570, however it pulled back from the support zone of 17550 – 17500 and closed above 17600. Until there is a decisive break of this range the range bound action is likely to continue,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

“On a weekly basis the Nifty has closed in the negative after three consecutive weekly gains which indicates a pause in the overall up move and until this week’s high of (17863) is not taken out we can expect the consolidation to continue. On the downside there are multiple supports in the range of 17600 – 17500 in the form of the 200- and 40-day moving average which shall provide cushion in case of a fall. The momentum indicators on the daily and hourly time frame are providing divergent signals and hence we shall assign more weightage tot eh price action and wait for a decisive move beyond the extremes of the range 17500 – 17860,” he added.

“Investors are concerned that any further disappointment in corporate earnings from bluechip companies could worsen the sentiment going ahead. Technically, on weekly charts the Nifty has formed a long bearish candle which is largely negative. After a short-term correction, the Nifty has been consistently taking support near the 200-day SMA (Simple Moving Average). For the traders, 17550 would be the immediate support level while 17650 could act as an important resistance zone. Below the same, the market could slip till 17450 -17400. Above 17650, the chances of hitting 17750-17800 would turn bright. Meanwhile, Bank Nifty is witnessing a range-bound activity, with 42400 acting as a key resistance zone, and above the same, it could rally till 42700-42800. On the other side, below 41900, the index could slip till 41500-41200,” said Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd

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