Markets in crucial zone, say analysts as Sensex, Nifty fall for second day2 min read . Updated: 30 Jul 2020, 07:01 PM IST
- 11000-11100 is going to be a crucial zone for the markets, say analysts
- Financial stocks led the decline today
Indian markets fell for the second day in a row in tandem with weakness in global markets. The 30-share BSE benchmark Sensex gave up initial gains to close 335.06 points or 0.88 per cent lower at 37,736.07. The broader NSE Nifty tumbled 0.90% to finish at 11,102.
IndusInd Bank was the top laggard in the Sensex pack, tumbling 5.62%, followed by HDFC, Axis Bank, PowerGrid, SBI, Bajaj Finserv and Bharti Airtel.
On the other hand, Sun Pharma, Maruti, Infosys and Reliance Industries were among the gainers, climbing as much as 3.44 per cent.
Overnight, the US Federal Reserve held rates near zero, as widely expected, and pledged support to the economy.
Here is what on today’s market performance.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short term trend of Nifty seems to have turned down and a move below 11000 levels could confirm short term trend reversal in the market. A decisive move below 10900 is expected to drag Nifty to further lows up to 10700-10650. On the way up, 11300 is going to be a strong overhead resistance."
Ajit Mishra, VP - Research, Religare Broking
"We’re not surprised by the recent profit-taking phase and expect further correction ahead. Markets will first react to the index heavyweight, Reliance results in the early trade on Friday i.e. July 31 and that may set the tone for the rest of the session. Traders should keep a close eye on 11,050 in Nifty as its breakdown would trigger a fresh decline towards 10,950 levels else consolidation will continue. Traders should prefer hedged bets and maintain positions on both sides."
Vinod Nair, Head of Research at Geojit Financial Services
"Global markets faded as a status quo in policy by the US Fed Reserve failed to offset tepid business outlook and resurgence in virus cases around the world. Indian markets also closed in the negative, in spite of a positive opening. Unlock 3.0 failed to enthuse, as earnings results took priority and markets turned volatile in the expiry session."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"We were unsuccessful in closing above the 11300 level. Instead we dropped and tested the 11100 support level. 11000-11100 is going to be a crucial zone for the markets. A bounce from these levels should take the markets back to 11300-11400 but if we break 11000 on closing, we could see a further slide which could take the markets to 10800."