Focus on potential ones

The Sensex end with moderate loses as the index closed 8.39 points or 0.02 per cent lower at 36,068.33. It was volatile trading session after gaining 208.74 points or 0.58 per cent at the day’s high of 36,285.46, the index fell 42.77 points, or 0.12 per cent at the day’s low of 36,033.95.

The mid-cap index rose 0.51 per cent, while the Small-cap index rose 0.69 per cent. Both indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,524 shares rose and 1,077 shares fell.

Among sectoral indices on BSE, the metal index (up 1.43 per cent), the basic materials index (up 0.92 per cent) and the consumer durables index (up 0.69 per cent), outperformed the Sensex. The telecom index (down 0.76 per cent), the energy index (down 0.39 per cent) and the realty index (down 0.29 per cent), underperformed the Sensex.

Technical view

Sameet Chavan, chief analyst-technical and derivatives at Angel Broking, said, “Last day of the calendar year started with a decent upside gap, taking cues from the cheerful global peers. However, due to lack of follow up buying, index came off a bit from early morning highs and then slipped into a consolidation mode for the major part of the day to conclude the year on a muted note.

Being the last day of the calendar year, the market participation was considerably low. Technically spea-king, index is tad below its breakout point of 10,920. Going ahead, a sustainable move beyond this would unfold the next leg of the rally towards 11,050 – 11,200 levels. Hence, the move can be interpreted as a breather before the next move. On the downside, 10,840 – 10,800 are seen as immediate supports.

As far as other pockets are concerned, midcap basket still looks quite promising and hence, one should keep focusing on potential candidates within the same. The heavyweights may consolidate for a while and hence, one should capitalise on some outperforming propositions within the midcap basket.

Market view

Vinod Nair, head of research, Geojit Financial Services, “The day opened with gains tracking positive global sentiment on account of progress in US-China trade deal while global growth uncertainty is prompting investors to turn risk averse which was visible in profit booking. Additionally, the marginal fall in US crude supply has caused the oil price to recover from its recent fall impacting the market.”