Markets snap 2-session gains as weak Asian indices trigger profit taking in select blue chips

Markets snap 2-session gains as weak Asian indices trigger profit taking in select blue chips

FPJ Web DeskUpdated: Monday, July 26, 2021, 04:24 PM IST
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Short-term disruption to activity is likely to continue until the latest wave of COVID-19 infections passes | pexels

After a flat opening, the Index made an intraday low at 15,797 levels but managed to bounce from the intraday low and made a high at 15,893.35 levels and closed the session at 15,824.45 levels with a loss of 31.60 points. Bank Nifty closed at 34,949.70 levels with a loss of 84.70 points.

World shares were mostly lower on Monday after stocks rallied to records on Wall Street, with the Dow Jones Industrial Average closing above the 35,000 level Friday for the first time.

“Short-term disruption to activity is likely to continue until the latest wave of COVID-19 infections passes and restrictions enacted under the state of emergency laws are lifted," Usamah Bhatti, economist at IHS Markit, said in a report.

On the sectoral Front, Nifty Energy was the top loser while Metal and Pharma ended in green. Stocks like BajajFinsv, Hindalco, DivisLab, UltraCemco and Titan were top gainers while JSWSteel, M&M, Wipro and Reliance were the prime laggards in Nifty.

According to Sumeet Bagadia, Executive Director, Choice Broking, "On the technical front, the Index has taken support from 21-DMA, i.e. 15,790 level, which suggests sustained above the same can show upside movement. Moreover, the Index has taken support from the middle band of Bollinger, which indicates sustained above the same adds bullish momentum for upside. Four hourly Momentum Indicator MACD is also showing positive crossover which suggests strength for the next day. At present, the Nifty is having support at 15,600 level while resistance comes at 15,950 levels."

The Nifty formed a bearish candle on Monday. It traded sideways with Highs and Lows inside of Friday's range and closed at 15821. Gaurav Udani, CEO & Founder, ThincRedBlu Securities said, "15,880 is acting as a very strong resistance and 15,580 is strong support. Fresh longs should be considered only on closing above 16,000 levels and all longs should book profits if Nifty closes below 15580".

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, " \While commodities did well, financials and real estate stocks closed little lower. The market has formed an "inside body" formation, which is a sign of indecisiveness and to show any trending move on Tuesday, the market has to break either upward or lower boundary which is at 15,900/5,3100 and 15,750/52,650 levels respectively. At a close below the levels of 15,750/52,650, the Nifty would decline to 15,650/52,300 levels."

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