Markets closed the trading day with slight profit booking as the other days of the week. Nifty50 closed at 15,680 down by 0.26 percent and Sensex closed at 52,318.60 down by 0.31 percent. The auto sales numbers for the month of June are out, with Maruti Suzuki, Tata Motors and M&M all showing a jump in the sales compared to the month of May 2021.
The repetitive profit booking on all trading sessions of the week are signalling that bulls are not coming strong, said Mohit Nigam, Head-PMS, Hem Securities. "Though with the positive notes in the market we still feel the further rally is intact. Nifty is getting closer to the support of 15,600 and will take further support at these levels for rising to newer highs in the coming trading sessions," he added.
Nifty continued to show choppy movement with negative bias and still there is no evidence of any upside bounce emerging from the lows, said Nagraj Shetti, Technical Research analyst, HDFC Securities. "Nifty is currently placed at the important cluster support of 15,650 levels and a move below this area could result in slide down to 15,500 levels," he said.
Thursday's (July 1) fall was led by the decline in technology, banks and commodities, which have a large weight in the index. Volatility is declining, which is a sign that bulls are resting and they could bring volatility to the market. India VIX closed at 12.63, the lowest level in the last 18 months. On a monthly basis, the market remained in the narrow range of 500 points, which is an unusual and even narrow trading range over the last six months, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. Long traders need to be careful when adding long positions at high levels and such markets invite unpleasant events, he said.
For the day, the Nifty closed below the levels of 15,700 and on Friday (July 2), we may see the market hitting the lower boundary which is between 15,650 and 15,600 levels, Chouhan said.