Stock picks of the day: Nifty likely to trade in a range of 11,704-12,000
Episode 1290, Jun 10, 2019, 02:00 AM
The Indian equity market traded in a volatile range with a negative bias on a week-to-week basis. The index closed with losses of 0.4 percent for the week ended June 7.
The downgrade in Commercial Papers of DHFL to ‘Default’ category by Crisil & ICRA led to a selloff across NBFC/HCFs companies, and continued to hurt the sentiment.
Despite 25 bps cut in repo rate at 5.75 percent by the RBI during June MPC meet with a change in policy to ‘accommodative’ stance, it failed to lift the sentiment with no clear action to address distress NBFC sector.
The momentum indicator continued to signal positive divergence with weekly RSI at 63 odd levels and MACD is trading above its signal-line on a weekly scale.
The weekly resistance for the index is now seen at 12021 odd levels while support is placed at 11,830-11,704 odd levels.