Markets end in positive zone after volatile session; realty and banks shine even as IT and pharma struggle

Markets end in positive zone after volatile session; realty and banks shine even as IT and pharma struggle

The markets ended in green zone after a volatile session on Monday. The Nifty closed flat at 19,674 while the Sensex finished Monday’s session at 66,023, up merely 14 points. Sectors such as realty, banking and consumer durables performed well while IT and Pharma counters struggled. The market breadth is poised evenly with the Nifty Advances -Decline ratio maintained at 1:1.

Vinod Nair, Head of Research at Geojit Financial Services said, “The day presented a mixed picture in the market, with Investors were actively repositioning, shifting away from stocks tied to the global economy and focusing on the domestic economy. Concerns loomed over a potential global economic slowdown due to the prolonged period of high interest rates. While the domestic market is witnessing good registration and consumption demand ahead of the festival season, India’s entry into JP Morgan’s Emerging Markets Government Bond Index is benefiting the financial sector in anticipation of a reduction in funding costs.”

That said, the Nifty is hovering around its key support levels. What does that indicate in terms of a near-term fllor? Rupak De, Senior Technical at LKP Securities said, “The index remained volatile before closing with a doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600; a fall below 19,600 might initiate fresh shorts. On the higher end, resistance is placed at 19,755.”

Meanwhile banking is seeing steady gains as India’s entry into JP Morgan’s Emerging Markets Government Bond Index is acting as the sentiment booster for the financial sector. The Bank Nifty index experienced a brief respite following a four-day sell-off, with buyers gaining traction from lower levels. “However, the index continues to trade below its 20-day moving average (20DMA), which is currently positioned at 45,000. A close above this level would signal a potential resumption of the upward momentum.On the downside, the lower-end support now rests within the 44,500 to 44,000 zone. A breach below this support range could result in additional selling pressure on the index,” explained Kunal Shah, Senior Technical & Derivative at LKP Securities.