Market Closing Podcast on June 28, 2018

Moneycontrol News

Bears gained control of D-Street from the word go on Thursday and pushed the index below its crucial support placed around 10,600 levels weighed down by fall in the rupee which touch an all-time low of Rs 69.09/USD earlier in trade today.

However, the index did manage to bounce back from its 100-days exponential moving average (EMA) placed at 10,571, but it is still down 1.3 percent on the expiry-to-expiry basis.

The S&P BSE Sensex did manage to defend its crucial psychological support placed at 35,000 helped by gains in telecom, select auto, as well as IT stocks. Banks, financial and OMC stocks led the decline.

The Nifty rollover according to provisional data stood at 57 percent which is less than 62 percent seen at the starting of June series and its 3-month average of 67 percent.

“Activity in the derivative market has been picking up in last 3-4 month and the same can be seen in increasing the Open interest. The market has been volatile during the month of Jun with a range of 10550 – 10890,” Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services told Moneycontrol.

“Major index Nifty is near its June month starting level of 10750. Rollover activity has been low this month, people have already started taking 2019 election into consideration. Global cues will be the driving force for Indian market for the rest of the year,” he said.

The S&P BSE Sensex closed 179 points lower or 0.51 percent at 35,037 while the Nifty50 closed 82 points down at 10,589.

Analysts advise investors to remain short as Nifty broke below plenty of support level in June series. The index formed a bearish candle but at the same time, Supetrend indicator gave a sell signal on the daily charts.

The last time Supertrend indicator gave a sell signal the index touched a low of 10,418 before bouncing back towards 10,700 levels when it gave a buy signal.

Nifty & Nifty Bank which cut losses in Thursday’s trade closed the June series with losses of 1.4 percent and 2.4 percent respectively. The midcap index was the biggest loser among major indices, shed over 330 points in June series.