Domestic equity markets opened on a flat note on
Friday. The markets today showed sideways movements taking cues from global
markets. Also the weakness some of the heavy weight counters kept the markets
under pressure. Market participants were taken a cautious approach ahead of US
job data that could act as a strong cue to when the Fed will raise interest
rates. Markets continue to trade in consolidation mood; shutting the last day
of the week lower. Disappointing earnings by State-run BHEL and profit booking
in select banks, financials and pharma stocks dragged the indices lower.
Investors prefer to book profit ahead of key US marco economic data which will
be released tonight.
Nifty today closed at 8564 down around 24
points.. The Sensex and
NSE Nifty closed in red on Friday following weak industrial earnings.
The Sensex and Nifty ended down at 28236 and 8564 respectively. The market is
showing signs of fatigue after the strong outperformance it put up during the
last 2 months. The future performance of the markets will depend on the
improvement in business confidence which is still low as well as the uptrend in
business volume in 2HFY16. The highest risk is that the market has high hopes
of increasing earnings in the latter half of the fiscal year. It is a
continuation formation on the charts since a higher low and higher high was
posted in this session. Having closed above 8600 after a few failed attempts,
this region will be crucial in determining the movement for the day. It is the
immediate support and as long as this holds on dips, the going is to be strong
with 8700 as the net target. Below 8600, support will be found in the 8590,
8565, 8530, 8500 region but the critical level is around 8475-8470 and a close
below this level will signal weakness.
RESISTANCE: 8650, 8680, 8710
SUPPORT:
8620, 8590, 8560
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