On Monday, Sensex opened 90 points higher at 63,474.21 and it went up by 190 points to an intraday high of 63,574.69. But later, the index lost all its gains and fell 337 points to an intraday low of 63,047.83. Overall, the index fell 216 points to 63,168.30.
Meanwhile, Nifty fell 71 points to 18,755.45 giving a bearish outlook on charts. We saw an effect of global sentiments on the domestic market as global investors awaited US Federal Reserve Chair Jerome Powell's testimony.
Foreign Institutional Investor (FIIs) continued to remain net buyers on Monday as the markets closed.
The mid and smallcap indices continued to do well, with the midcap index closing 0.08 per cent lower at 28,309.18, after hitting a new high of 28,526.99 in the morning.
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While the BSE Smallcap index reached a new all-time high of 32,531.56 during intraday trading and finished 0.24 percent higher at 32,368.74.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Indian equities shied away from closing at all-time high levels amid profit booking, primarily driven by private banks. Global markets also took a breather after a strong rally last week as investors looked forward to China’s rate decision and the Fed chair's testimony. The Indian rupee has been exhibiting strength recently, supported by strong FII inflows and favourable domestic macroeconomic data."
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "The ongoing rally scaled new closing highs last Friday and is now within sight of a new all-time high, which is 18887 for the Nifty. There are two significant trends in the market now: One, this rally is broad based with the participation of most sectors except large-cap IT. Two, mid and small-caps are outperforming large caps. This trend is likely to continue in the near-term".
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He further added, "The FII buying support to the rally continues with an investment of Rs 7272 crores during the last 4 trading days. This strong FII buying has strengthened the bulls and made the buy on dips strategy successful. A new all-time high is only a matter of time. The only concern now is the poor performance of the monsoon, so far."
Forecast For Today
Anand James, Chief Market Strategist at Geojit Financial Services gives the following assessment for the day.
Nifty outlook:
We shall begin the week with hopes of seeing 18770 intact, so that 19000-19070 objective may be eyed as a base case scenario and 19200 as an optimistic case. Alternatively, an outright fall back below 18770 will force us to rethink the upside prospects, though a plunge is less likely.
Derivative:
Nifty weekly contract has highest open interest at 18800 for Calls and 18700 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 19100 for Calls and 18800 for Puts in weekly and at 19100 for Calls and 18800 for Puts in monthly contracts. FIIs increased their future index long position holdings by 9.25%, increased future index shorts by -4.96% and in index options by 35.71% in Call longs, 34.42% in Call short, 37.90% in Put longs and 71.16% in Put shorts.
Rupee vs Dollar outlook:
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The ascending triangle is bracing for a downside break, which could lead to a systematic decline to 81.5-80.6, on a close below 81.9. However, the long legged doji on Friday, encourages us to play a reversal move aiming 82.15 initally.
Here are top stocks for today given by Anuj Gupta, Vice President, Research, IIFL Securities
1) Mangalore Refinery and Petrochmcls Ltd: Buy MRPL, SL 72, Target 85. The stock looks technically strong showing Bullish chart pattern having substantial volumes will have fresh breakout at 72 levels.
2) Mahindra & Mahindra Financial Services Ltd (M&MFIN): Buy M&MF SL 304 ,Target 330 as the stock is showing Strong trend with higher top higher bottom. Also, fresh buying is seen in the stocks. Tractor demand expected to increase in the Monsoon.
