What looked as splendid session in morning deals, turned out to be merely a flat one amid volatility, as investors opted to cash out profits at higher levels ahead of key cabinet portfolio allocation that are likely to be announced Post swearing-in ceremony of the new government.
After a gap-up opening, benchmarks fervently gained from strength to strength to surpass their crucial 25,000 (Sensex) and 7,500 (Nifty) levels as sentiments remained up-beat on report that foreign institutional investors (FIIs) bought shares worth a net Rs 416.80 crore on May 23, 2014, as per provisional data from the stock exchanges.
Immense volatility was witnessed in last leg of trade and markets took U-turn with frontline gauges witnessing sharp selloff due to emergence of profit-booking in realty, power, consumer durables and oil & gas counters.
Though, domestic bourses staged smart recovery to end flat after hitting fresh intraday low in dying hour of trade. European Central Bank President Mario Draghi. Asian shares touched one-year high on Monday, tracking gains from the Wall Street and a decisive win for billionaire Petro Poroshenko in Ukraine's presidential election. Investors were also hoping for easing geopolitical risks after exit polls in Ukraine gave Poroshenko more than 55 per cent of the vote in the presidential election.
The NSE’s 50-share broadly followed index Nifty slipped by around ten points but managed to hold its psychological 7,350 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex rose by over twenty points to end
above its crucial 24,700 mark.
The broader markets, snapping their six days winning streak, ended the session with a cut of over two percent. The market breadth remained in favour of decliners, as there were 1,362 shares on the gaining side against 1,660 shares on the losing side while 108 shares remain unchange.
On the BSE Sectoral front, Auto up by 1.47%, IT up by 1.46%, Teck up by 0.81%, Capital Goods up by 0.56% and FMCG up by 0.23% were the top gainers, while Realty down by 5.22%, Power down by 2.94%, Consumer Durables down by 2.00%, Oil & Gas down by 1.55% and PSU down by 1.32% were the top losers in the space.
TECHNICAL PARAMETERS OF NIFTY:
Today, RSI was at 81MACD positive above signal line; India VIX was at 20~. Nifty closed above all of its moving averages like 5DMA (7306) 20 DMA (6990) 50 DMA (6791)200 DMA (6222) which all indicate that market is in strong bull run with huge fund flow from FIIs but investors may book some partial profit at these levels as market has seen a huge run up in the short span of time.
