Nifty may trade with negative bias

The market ended with modest gains in a volatile trading session. After a positive opening, stocks trimmed gains as stocks gyrated in a small range. The Sensex closed up 40 points, or 0.12 per cent, at 34,991. The Nifty 50 Index rose 6 points, or 0.06 per cent, to settle at 10,530.

The BSE Mid-Cap Index fell 0.62 per cent while the Small-Cap fell 0.06 per cent.The market breadth was positive as 1,284 shares rose and 1,274 shares fell.

Among the sectoral indices on the BSE, Consumer Durables was down 1.79 per cent and Metal down 1.47 per cent. IT was up 0.99 per cent.

The key Sensex gainers were TCS (2.22 per cent), Yes Bank (1.95 per cent) and Tata Motors (1.69 per cent). The losers included Vedanta (-6.7 per cent), SBI (-2.98 per cent), Axis Bank (-2.67 per cent) and Maruti Suzuki (-1.31 per cent.)

Technical view

Mazhar Mohammad, chief strategist–technical research & trading advisory, Chartviewindia.in, said: “Further upsides to the Nifty for the time being shall be capped around 10,606 levels and unless it decisively registers a breakout above the said level, excluding sentiment-driven muhurat session, the bulls may not have much ground to cover on the upside. In other words, we can expect sideways move with a negative bias in the next couple of trading sessions till 10,440 on the downside is breached.”

Market view

Jayant Manglik, president, Religare Broking, said: “While there have been some encouraging news for Indian equities with correction in crude oil prices and reversal in USD/INR, we remain cautiously optimistic in the near term given the headwinds which persist both on domestic as well on the global front. The liquidity concerns in the NBFC sector is likely to keep investors on the edge. On the global front, the US mid-term elections and the US FOMC meet are also likely to be on the market’s radar.

“Further, with more results to be announced in one-two weeks, we expect stock-specific volatility to continue. Thus, we would advise maintaining a stock-specific trading approach and focus more on position management.”