10,840 becomes key support zone

The domestic market managed to close with moderate gains amid hi­ghly volatile trades. The S&P BSE Sensex ended 52.79 points, or 0.15 per cent, to close at 36,374.08, while the Nifty 50 Index rose 14.90 points, or 0.14 per cent, to end at 10,905.20.

The S&P BSE Mid-cap Index fell 0.3 per cent, the Small-cap Ind­ex fell 0.33 per cent. The market breadth was negative with 1,043 shares rising and 1,521 shares falling on the BSE.

Technical view

Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said: “In last couple of days, US markets have once again started marc­hing northwards and in-line with this, we opened higher after Wednesday’s quiet day of trade. Subsequently, Ind­ex co­nsolidated for a while; however post the mid-session, we saw aggravated profit taking ac­ross the board. At one point, things did not look good but fortunately for us, strong buying emerg­ed at lower levels to pull the index back above the 10,900 mark to eventually conclude with negligible gains.

“Market always keeps us on toes and on Thursday, the kind of swings we had on both sides, is the perfect example of it. At the end, we can easily say we are in a relatively safer zone now and Thursday’s intraday dip was merely a pullback towards the previous hurdles of 10,860 – 10,840. But as mentioned, at one point during the day, individual stocks were un­der a tremendous pressure. At present, the hou­rly chart gives us a better view as we can see perfect characteristics of a pullback move after a breakout. We continue to remain upbeat and expect the Nifty to head towards the next junction of 10,970 first and then to test 11,150. On the flipside, 10,840 followed by 10,820 now becomes a key support zone.”

 Market view

Vinod Nair, head of research, Geojit Financial Services, said: “Despite weak global cues domestic market managed to trade on a positive territory supported by stock specific buying and stro­ng rupee. Investors are expectinga silver lining from the Q3 results as fall in oil prices and ease in inflation provide operational efficiency to the business. On global front, trade tensions and risk of recession will cast cloud over the sentiment while lack of major triggers in the domestic market co­uld steer a range bound movement in the near term."

—Ashwin Punnen