The Indian stock market opened on the downside after the weekend, although the bulls took control in the second session but the Sensex closed 86.6 points or 0.16 per cent lower at 54395.23 while the Nifty index was down 4.60 points or 0.03 per cent at 16,216. closed. Whereas Bank Nifty has managed to settle at the level of 35469.65 after gaining 0.98 percent.
On the sectoral front, Nifty Energy, Nifty Metal and PSU Bank contributed over 2-2 per cent each. On the other hand, Nifty IT and Infra closed down 3.2 per cent and 0.37 respectively.
EICHERMOT, ONGC and TATASTEEL were the top gainers in Nifty stocks while BHARTIARTL, TCS and HCLTECH were the major laggards. India was down 0.16 per cent leaving the VIX 19 level. Technically Nifty has formed a bullish candle on the daily chart.
The chart pattern shows that if Nifty crosses the level of 16300 and sustains then there will be buying which will take the index towards the level of 16500-16700. Daily and Weekly Strength Indicator RSI is trending upwards indicating a positive bias.
The recovery in Nifty from recent lows indicates the resilience of the market and its ability to move higher. Rupee continues to trade weak against the US Dollar as it has hit a lifetime low of 79.43 which will be a related factor in the coming days.
From selling on the rallies in June to buying on the downside in July, there is a slight change in the investment strategy in the market. Corporate earnings and macroeconomic data from domestic and global markets will impact Dalal Street this week.
About Mehra
research Associate
Choice Broking
Source: Choice India