Market seeing consolidation

The market ended lower in line with the global trend as investors turned cautious after the hawkish comments from US Federal Reserve chair Jerome Powell. The Sensex fell 162.35 points, or 0.47 per cent to settle at 34,184.04, The Nifty shed 61.45 points, or 0.58 per cent, to close at 10,492.85. The BSE Mid-Cap index fell 0.23 per cent while the Small-Cap index rose 0.21 per cent. The market breadth was negative as 1,575 shares fell and 1,123 shares rose on the BSE.

Among sectoral indices, the BSE Teck, Realty and IT indices outperformed the Sesex, rising 0.55 per cent, 0.12 per cent and 0.85 per cent, respectively.

Technical view

According to Ruchit Jain, equity technical analyst, Angel Broking, the Nifty hit a low of 10,461.55 for a few minutes post-opening and then consolidated for the entire trading session to end a tad below the 10,500-mark. “If we observe the recent past, it is seen that the Nifty has consolidated in a broad range of 10,300-10,640, which can be termed as a time-wise correction.

“Thus, the last two days’ correction is a part of this consolidation phase. Although Nifty has closed below the 10,500-mark, it has formed a ‘Doji’ candlestick pattern on the daily chart. Considering this, the short term range for the Nifty is at 10,450-10,640.

“Short term traders are advised to trade with a stock specific approach and follow proper risk management.”

Market view

Jayant Manglik, president, Religare Broking, said: “The Indian market saw another lacklustre trading session amid volatility…On global front, Asian and Europeans markets faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve chair revived fears about faster rate rises in the US.

“We expect the Indian equities to consolidate in the coming sessions without any major triggers in the near term. Also global developments could lead to market volatility in the near-term.

“However, any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook. Meanwhile traders should remain cautious and keep their positions hedged, as volatility is likely to remain high in the coming sessions.

Ashwin J Punnen