Sensex snaps 6-day gaining streak, Nifty may consolidate ahead of US Fed meet later this week

Sensex snaps 6-day gaining streak, Nifty may consolidate ahead of US Fed meet later this week

Domestic stock markets closed with losses after a volatile trading session on Monday. S&P BSE Sensex fell 306 points or 0.55% to settle at 55,766 while the NSE Nifty 50 index ended at 16,631, down 0.53%. Mahindra & Mahindra was the worst performing Sensex stock, down 3.83%, followed by Reliance Industries and Maruti Suzuki India. Zomato’s share price tanked 11%. Tata Steel rose 3.1% as the top Sensex gainer, accompanied by IndusInd Bank and Asian paints. Bank Nifty index closed flat with a negative bias while India VIX rose 6.19%.

Deepak Jasani, Head of Retail Research, HDFC Securities –

Kunal Shah, Senior Technical Analyst at LKP Securities–

“The Nifty index after a 600 points rally witnessed profit booking at higher levels. The index will likely consolidate in the range of 16,400-16,800 ahead of the US FED meet. The trend remains on the upside and one should keep a buy-on-dip approach.”

Palak Kothari, Senior Technical Analyst, Choice Broking –

“On the technical front, Nifty has formed a Doji kind of candlestick on the daily chart which suggests indecision between buyer & seller. Nifty has taken support from rising trend line as well as 100 DMA which suggest a northward journey in the counter. The Nifty may find support around 16500 levels while on the upside 16800 may act as an immediate hurdle. On the other hand, Bank nifty has support at 36000 levels while resistance at 37300 levels. Overall, the Index has formed a good base around 16500 level, every dip can be used for buying opportunities in value stocks.”

Mohit Nigam, Head – PMS, Hem Securities –

“As concerns about a recession grew, disappointing business activity statistics from Europe and the United States, along with worry over China’s property market, resulted in generally negative trading on the Asian markets. European markets were trading lower as traders considered the economy’s murky future and prepared for a busy results week. On the technical front, key support and resistance for Nifty 50 are 16,500 and 16,800 respectively while key support and resistance for Bank Nifty are 36,300 and 37,200 respectively.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Fears of global economic slowdown along with the reaction to a slew of major quarterly earnings dictated the trend in the domestic market. Recession fears are casting a shadow over the global markets as US and Euro business activity contracted unexpectedly owing to the downturn in manufacturing and service sectors. The major market driver this week will be the Fed’s policy decision on Wednesday, where it is expected to hike rates by 75bps.”