HDFC Securities says that the Indian benchmark equity indices broke a four-day winning streak on May 11. Nifty opened gap down due to weak global cues, but inched up gradually through the day with some volatility. At close the Nifty50 was down 0.61% or 91.60 points to 14,850.75. Volumes on the NSE were above recent averages. Among sectors Oil & Gas, Power were the main gainers while Metals, IT and Banks were the main losers.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Asian stock markets are sharply lower in deep red on Tuesday, following the broadly negative cues overnight from Wall Street as the outlook for inflation weighed on the markets amid an increase in commodities prices..

See Zee Business Live TV Streaming Below:

\

April marks the second consecutive month of net inflows for open-ended equity schemes at Rs 3437 crore, but it fell from Rs 9115 crore inflow in March, according to data released by the Association of Mutual Funds in India. Contributions to systematic investment plans stayed buoyant at Rs 8591 crore versus Rs 9182 crore inflow in March. (March numbers included flows of the last two days of February).

Nifty fell but did not close at the intraday lows. In fact Nifty was among the most outperforming indices across Asia having fallen among the least. The fact that May 10 was the first day in recent times when the total Covid cases fell in India helped sentiments improve. 14744-14892 is the band for Nifty in the near term.          

Nifty opened on a downside gap of 153 points and started with fine intraday upside recovery in the initial half of the session. Intraday weakness got triggered in the afternoon and the market finally closed the day on a minor upside recovery note. The opening downside gap remains partially filled.

A reasonable positive candle was formed at the lows with minor upper shadow. Technically, this pattern indicates an attempt to comeback of bulls after early part weakness. Though Nifty declined on Tuesday, the overall market breadth was positive and the broad market indices like midcap and small cap of NSE have closed higher by 0.79% and 0.82% respectively. This is a positive indication.

The upper range of 14900-15000 levels have finally proved a difficult task for the market to breakout on the higher side and the current weakness from the highs could be considered as another failed upside breakout attempt of the broader high low range. There is a possibility of this weakness getting over in the next 1-2 sessions and one may expect a formation of higher bottoms around 14700-14750 levels. This market action signals increasing strength of upside momentum and that could eventually result in Nifty retesting the hurdle and the upper range around 15000-15100 levels. HDFC Securities say that immediate support is placed at 14750 and on the higher side 14970 could act as immediate resistance.