A morning walk down Dalal Street | Nifty may consolidate with near-term support at 10,900
Episode 1570, Aug 19, 2019, 01:53 AM
As long as the index sustained above the said low, a breakout above the 28-day old descending channel could be expected, which was in progress from July highs of 11,981 levels, suggest experts.
The Indian market slipped in red for the week ended August 16, but bulls managed to push the benchmark indices above its crucial resistance levels.
The S&P BSE Sensex closed above 37,000 while the Nifty50 also broke above 11,000 levels. The Nifty50 bounced back after hitting a low of 10,901 in the week gone by.
Muted corporate results, no big bang steps or stimulus announced by the government which most investors were hoping for led to a fresh round of selling. On the global front, escalating trade war concerns between the US and China, an inverted US yield curve weighed on sentiment.
For the week, the S&P BSE Sensex fell 0.61 percent while the Nifty50 was down by 0.56 percent but the big carnage was seen in the broader market space.
The S&P BSE Smallcap index was down 0.91 percent while the S&P BSE Midcap index fell 1.32 percent for the week ended August 16.
In the S&P BSE Smallcap index, as many as 48 stocks fell 10-30 percent for the week ended August 16 which include names like Aarti Industries, Surya Roshni, Orient Paper, JBF Industries, Cox & Kings, Coffee Day Enterprises, Inox Wind, GIC Housing, Shilpa Medicare, and Saregama India etc. among others.
The rupee recovered from early lows to close higher by 13 paise at 71.14 against the US currency on August 16 in line with firm local equities, defying gains in the greenback overseas and foreign capital outflows.
On the institutional front, FPIs were net sellers in Indian markets for Rs 1339 cr while the DIIs were net buyers in Indian markets for Rs 1058 cr, provisional data showed.