Despite a volatile session, the benchmark indices closed with moderate gains. The Sensex rose 21.47 points or 0.05 per cent to close at a 40,345.08, while the Nifty added 4.80 points or 0.04 per cent to end at 11,912.95.
According to analysts gains were capped due to negative global cues amid escalating violence in Hong Kong that pushed Asian stocks to their lowest since August. The market breadth was negative with 1,244 shares rose and 1,293 shares fell on BSE. Both the BSE Mid- and the Small-Cap index closed with moderate gains. Both these indices outperformed the Sensex.
The domestic stock market will remain shut on Tuesday, 12 November 2019, for Gurunanak Jayanti.
Technical View
“Index started a week with mild strength and closed at 11,913 with gains of five points on Monday session. Index has formed good resistance near 12,000-12,035 zone any decisive break above said levels can push index towards 12,300 zone, immediate strong support for index is coming near 11,850 zone and overall support is coming near 11,700 zone. Current chart structure hinting we may see some consolidation move going forward in index in the range of 12000-11700 zone and either side breakout will decide the final direction," said Rohit Singre, Senior Technical Analyst at LKP Securities.
According to analysts, A near term consolidation phase cannot be ruled out. While the broader uptrend continues to remain intact and no new all time highs is unlikely.
“Index currently is witnessing a phase of consolidation. Broader trend continues to remain positive and traders should utilize dips towards support zone to build long positions. Overall we continue to maintain our positive view on the index for new all-time highs above 12,100,” said Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures Ltd.
Private bank and disinvestment related stocks closed higher. The currency was at 71.45 and 10 years Bond Yield was at 6.56, which is negative for the market, if these hold at the same levels for the next few days, analysts said.
Market View
The trend for the market is becoming uncertain and uncertainties never help traders as well as investors. For the time being, till the market is not crossing the level of 12035, investors should be cautious while creating long positions at higher levels. Nifty should remain in the range of 11950 and 11750.
“We continue to maintain our cautious stance on Indian markets given the recent run up. Going forward, last leg of earnings announcement, key data like CPI/WPI and IIP is likely to induce volatility into the markets. On the global front, market participants would keep a close watch on trade developments between US-China as the two approach closer to sign phase one of the trade deal,” Ajit Mishra Vice President, Research, Religare Broking Ltd.
