The market ended in the red, dragged by IT stocks on negative global cues amidst caution about the China-US trade talks. The Sensex fell 73.28 points, or 0.21 per cent, to settle at 35,103.14 while the Nifty fell 38.40 points, or 0.36 per cent, to settle at 10,679.65. The Federal Reserve on Wednesday kept the key US interest rate steady, saying that while inflation has moved higher, it's likely to run near the central bank's 2 per cent target in the coming months. The central bank maintained its fed funds at a range of 1.5-1.75 per cent. Among the sectoral indices on the BSE, Realty was down 1.79 per cent, followed by IT (down 1.62 per cent), Capital Goods (-1.6), Teck (-1.39), Industrials (-1.3) and FMCG (-1.1 per cent).
Technical view
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said:
“The market has become a bit vulnerable after the recent relentless rally from the March lows. On Thursday, the index managed to find a support around the previous breakout point of 10,640, which we believe is likely to act as a crucial support for the index. A sustainable move below this would augment the selling to test the sub-10,600 levels. As long as it sustains above this point, a possibility of making one more attempt towards 10,750-10,800 cannot be ruled out.”
VK Sharma, head-private client group & capital market strategy, HDFC Securities, said: “Support for the Nifty is seen at 10,630, below which Nifty could extend the fall till 10,560. As far as resistance is concerned, recent top of 10,785 is a level to watch out for. Bank Nifty, which is currently placed at 25605 odd levels, has got strong support at 25400.
Market view
Anand James, cfhief market strategist, Geojit Financial Services, said: "The market remained volatile throughout as US-China talks rekindled fears of escalation of trade war. This meant that profit booking persisted, even in an otherwise buoyant IT sector, resigning Nifty to languish around the 10,700 level. The expectation is that positive FOMC outcome and earnings positivity will seek to extend the market’s uptrend, but FIIs persistent selling remains a concern."
—Ashwin Punnen