Key equity indices the Sensex and the Nifty ended flat on June 30 amid weak global cues as concerns that the rate hike regime will derail the global economic recovery.
Major central banks such as the Federal Reserve, European Central Bank and Bank of England have reiterated that they will control inflation even as it caused pain.
Sensex closed 8 points, or 0.02 percent, lower at 53,018.94 while Nifty ended 19 points, or 0.12 percent, lower at 15,780.25. Mid and smallcaps underperformed as the BSE Midcap and Smallcap indices closed 0.74 percent and 0.54 percent lower, respectively.
In the 30-share pack Sensex, 11 stocks ended in the green while 19 ended in the red. Shares of Axis Bank, SBI, Kotak Mahindra Bank, NTPC and Larsen & Toubro ended as the top gainers while those of Tech Mahindra, Bajaj Finance, Bajaj Finserv, Tata Steel and IndusInd Bank ended as top laggards.
Among the sectoral indices, BSE Metal fell 2.18 percent, ending as the top sectoral laggard. BSE Auto, Basic Materials and Realty ended 1.25 percent, 1.20 percent and 1.17 percent lower respectively.
"Markets languished in the negative territory for the most part of the trading sessions and finally ended flat on the expiry day. The undertone remains bearish due to weak global cues and persistent foreign fund outflows. There is so much uncertainty that traders don't want to risk placing huge bullish bets," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
As Deepak Jasani, Head of Retail Research, HDFC Securities highlighted, the Nifty ended nearly 5 percent lower for the month and 9.4 percent lower for the quarter even as FPIs continue to be sellers on almost all days.
"Nifty closed at the lowest in four days on June 30, once again failing to hold the gains. 15,565-15,892 could be the band for the Nifty over the next few days," said Jasani.
Technicals
The market has been witnessing a lack of clear direction for the last three consecutive sessions.
Chouhan pointed out that for Nifty, 15,700 could be the key support level and 15,900 would act as an important resistance zone. The index could fall to 15,600-15,550 levels. Any fresh uptrend is possible only after the index sees 15,900 breakouts and above the same, it could move up to 16,000-16,050,” said Chouhan.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in pointed out Nifty50 remained volatile during the expiry session and witnessed mild selling pressure from the intraday high of 15,890 after testing its 20-day simple moving average (SMA) whose value is placed around 15,870 levels. However, the last four sessions of price action appear to be that of consolidation inside the range of 15,900 and 15,700.
"A directional move is unlikely to emerge unless the index comes out of this range. If the index registers a close above 15,927 then the strength can be expected to continue up to 16,200. Contrary to this, a close below 15,687 will weaken the index with an initial target of 15,400. Therefore, traders are advised to wait for a breach of key consolidation levels and initiate the trade in the direction of a breakout," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts not of MintGenie.
