Equity market indices put an end to a 7-day rally and closed just a few points lower to Monday's high. Nifty 50 closed at 15,574.85 while Sensex closed at 51,934.88.
Metals were top laggards while the losses were taken care of by gain in multiple heavyweights such as ONGC, Bajaj Finance, SBI, Adani Ports, HDFC and Bajaj Auto. Most of the leading automotive companies published May sales numbers, showcasing a steep M-o-M fall due to lockdowns imposed across most states during the reported period.
Maurti Suzuki's sales were down by 71percent, while Bajaj Auto's sales fell by 30 percent. However, the worst for auto companies is behind us and the coming months shall likely witness pent up demand, said Mohit Nigam, Head-PMS, Hem Securities. Also, IMT's forecast of abundant rainfall this monsoon shall lift spirits of the agricultural industry as well as investors on Dalal Street. Overall, looking at Nifty's support levels in today's session, bullish momentum seems to be intact and one can look forward to higher levels, he added.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said the markets took a pause after rallying for 9 consecutive days in a row. However, it was a great day for the Adani group of stocks and ended with gains around 3-5 percent. The move of the Nifty IT Index is encouraging and we suggest to accumulate technology stocks for this month. The Nifty 50 has closed below 15,600 and accordingly the index may visit the levels of 15510 to 15,450 levels. The Nifty, if it goes above 15,700, could immediately reach 15,770 or 15,850 levels, he added.
Sumeet Bagadia, Executive Director, Choice Broking, said, on the technical front, the index has been rising continuously with Higher Highs and Higher Lows formation from the last couple of weeks and also given a breakout of Bullish Flag pattern on a weekly time-frame, which suggest further upside movement in the counter. Moreover, the index has been trading above all the moving average in daily time frame, which points out strength in the counter. In addition, an indicator MACD & Stochastic witnessed positive crossover. At present, the nifty seems to have resistance at 15700 levels while immediate support shifted to around 15450 levels, Bagadia added.