Indian shares ended lower for the second day running on June 29, pushing the Sensex 185 points lower to 52,549 and the Nifty lost 66 points to close at 15,748.
Tracking weak Asian markets amid a rise in coronavirus cases, the Indian market saw a knee-jerk reaction. "Despite the government’s stimulus package to revive stressed sectors, domestic equities continued to trade weak due to new coronavirus outbreaks in Asia,” Vinod Nair, Head of Research at Geojit Financial Services said.
Extension of emergency credit guarantee scheme to MSMEs and subsidised financing to small borrowers would give a boost to the microfinance and NBFC sectors. Amid a broad-based selling in the market, the healthcare sector managed to remain positive due to the extended government support, he said.
Sectorally, buying interest was seen in healthcare, FMCG, and utilities, while selling pressure was seen in metals, oil & gas, telecom, banks and auto stocks.
The broader market also ended lower. The BSE midcap index fell 0.4 percent and the smallcap index 0.07 percent.
On the technical front, the Nifty closed below 15,800 on a closing basis, which could result in further selling pressure, said experts. If the index manages to hold above 15,700, the bulls may have a chance. The immediate resistance is placed at 15,900 levels, they said.
Here’s what experts suggest investors should do on June 30:
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 52,549.66 | -185.93 | -0.35% |
| Nifty 50 | 15,748.45 | -66.25 | -0.42% |
| Nifty Bank | 35,010.30 | -349.15 | -0.99% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Power Grid Corp | 236.00 | 4.15 | +1.79% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| IOC | 108.15 | -2.70 | -2.44% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 14330.20 | 82.60 | +0.58% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 2529.25 | -38.10 | -1.48% |
The Nifty formed a bearish candle and negated its higher lows formation of the last three sessions. The index has to hold above 15,700 for an up move towards 15,900 and 16,000. On the downside, support can be seen at 15,600 and 15,500.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The Nifty continued with its consolidation on June 29. As a result, the daily Bollinger Bands have contracted further.
On the downside, the index has reached its 20-day moving average (DMA). Last week, the minor degree dip found support near this key short-term moving average and the Nifty bounced.
The same is expected yet again. The swing low of 15,673 will be the subsequent near-term support. On the other hand, the swing high of 15,915 will be the key barrier to watch out for.
The overall structure shows that the ongoing consolidation is an opportunity for positional traders to get aligned with the larger uptrend.
Rohit Singre, Senior Technical Analyst, LKP Securities.
On the hourly chart, the Nifty formed a small double top pattern that has a neckline around 15,670. This level will be strong support for the index in the upcoming sessions.
Any break below can lead to more selloff. The resistance is placed near 15,800-15,900, and a close above these can take the index towards 15,900.
Sumeet Bagadia, Executive Director, Choice Broking
The index has also confirmed the Bearish Marabozu Candlestick on the daily chart, which indicates further correction in the upcoming session. Furthermore, the index has given closing below 21 HMA, which is also slightly negative.
In addition, momentum indicators RSI (14) and MACD also indicate negative crossover on the daily timeframe. At present, the Nifty seems to have resistance at 15,900, while immediate support comes at 15,650.
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