Focus on individual stocks

The market closed marginally higher after a highly volatile trade with the Sensex ending 46.64 points or 0.13 per cent higher at 35,739.16, the Nifty 50 index rose 13.85 points or 0.13 per cent to settle at 10,856. The S&P BSE Mid-Cap index fell 0.46 per cent whereas the Small-Cap index fell 0.21 per cent. Both these indices underperformed the Sensex. The market breadth was negative as 1,297 shares rose and 1,380 shares fell. The markets opened higher but gradually lost steam as profit taking set  after five consecutive days of positive advance decline ratio of 0.94.

Technical view

Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said: “Our markets had decent swings during the day as traders looked a bit confused ahead of the Fed policy. We had a positive start with a decent gap and this was followed by a strong correction to trim all opening gains. Subsequently, a good buying interest was seen at lower levels post the initial hour; leading to a gradual push towards the 10,900 mark. However, as most of the traders were a bit worried of, index eventually wiped off major chunk of gains due to a tail end correction.

“The index continues its consolidation with a mildly positive bias. It was clearly on the cards as the major index movers have taken a back seat and only beaten down counters from the Mid-Cap universe along with the Pharma space are driving the markets. Since, there is no participation from the key heavyweights; index is not going anywhere as the momentum is clearly missing.

“During the morning session, it looked like as if it was the day to come out of the consolidation. But, the close once again was disappointing. One needs to expect index remaining at a trading range of 10,920 to 10,780 for a while. Hence, it’s advisable to stay light and continue focusing on individual stocks. For the forthcoming day, 10,832 followed by 10,780 would be seen as immediate support levels.”

Market view

Anand James, chief market strategist, Geojit Financial Services, said: “Amidst a global cautiousness ahead of key central bank outcomes, Indian markets found positivity in rising factory growth. The uptick in CPI along with firm IIP numbers, however has raised the potential for RBI turning hawkish in the next meeting, and to that end, the progress of monsoon would be crucial."

—Ashwin Punnen