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| Edited By: Lachman Ramchand |Source: DNA |Updated: Mar 17, 2018, 05:38 AM IST
The markets finally succumbed to profit sales as the headline indices ended in the red last week for the second weekly closing in a row.
The bulls made an unsuccessful attempt at propelling markets higher but the last two sessions indicated a clear fatigue at higher levels.
The combined exchange weekly market breadth was negative as the figures were 10,250: 11,626 and the capitalisation of the same was also negative as the figures were Rs48,277 crore: Rs63,647 crore. The NSE lost Rs55,118 crore in market capitalisation on a week-on-week basis.
The banking and mid-cap indices led the decline, whereas the technology sector outperformed the broader markets.
Overseas investors were net buyers to the extent of Rs7,806 crore during the week gone by. The rupee closed the week at the 44.10 levels vis-a-vis the USD. The US markets witnessed a continued higher tops and bottoms formation with the Nasdaq Composite outperforming its old economy counterpart. The UK FTSE mirrored the Dow Jones Industrial Average formation and rallied in tandem.
The Asian sector saw the Hong Kong market lead the bull charge followed by Singapore, whereas Japan was an underperformer. While the overseas cues are largely positive, the domestic pulls and pushes of the markets may cause turbulence.
Technically, we have seen a fortnight of declines and that is a weak sign. The weekly bar chart of the Nifty indicates an outside pattern as the bulls attempted to regain their initiative, but failed. The weekly range advocated for the Nifty at 5850/6275 has held as the index trended largely within these parameters.
This week is likely to witness minor resistance at the 6200 level and major resistance at the 6425 levels. Support will be seen at the 5900 levels, below which the bears may attempt fresh aggression. The bullish pivot will be at the 6200 levels and the bearish threshold at the 6125 levels. I maintain my previous week’s view that fresh long positions especially in the leveraged segment must be avoided for now.
