The market remained in a narrow range but with a negative bias. Weakness in the Asian markets, consistent selling pressure from FIIs since the last three days, and steadiness in the prices of Brent crude at 75 could be the few reasons to keep the market within the trading range, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
The market failed to maintain momentum at 15,900/52,900 levels, which is an upward boundary for the market, and weakness from the same could result in gradual weakness towards 15,670/52,300 that is the lower boundary of the trading range. Coincidently, 20 days EMA is also placed at the same levels that should act as a reversal point for the market Chouhan added.
On Tuesday (June 29), the market witnessed weakness in financials, metals, and auto companies, which is an indication of buying breadth is poor. The activity was more into FMCG and pharmaceutical stocks.
The Index continued its losing streak for the second day. After a flat opening, it made an intraday high at 15835.90 levels but did not manage to sustain at a higher level and closed on a negative note at 15,748.45 levels with a loss of 66 points. While Bank Nifty showed more weakness compared to Nifty and ended in red note at 35010 levels. Nifty bank, Auto, Metal and PSU bank indices down 1 percent each, while some buying is seen in the Fmcg & Pharma index.
Sumeet Bagadia, Executive Director, Choice Broking said, "technically, the index has faced resistance at Upper Bollinger Band formation that suggests some profit booking for the near term. Moreover, the index has also confirmed the Bearish Marabozu Candlestick on the daily chart, which indicates further correction for the upcoming session. Furthermore, the index has given closing below 21 HMA, which is also slightly negative. In addition, a momentum indicator RSI (14) & MACD also indicated negative crossover on the daily timeframe. At present, the Nifty seems to have resistance at 15900 levels while immediate support comes at 15,650," he said.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "The short-term trend of Nifty is weak with choppy movement. The absence of sharp selling interest from the new highs in the last couple of sessions could signal a chances of halting of this decline and emergence of upside bounce in the next one or two sessions. Important supports to be watched around 15,670-15,600 levels,", he added.