Domestic investors need to be alarmed
Benchmark indices witnessed no significant activity for the second consecutive day, while Sensex was down 33 points. Among sectors, media index gained 1.83 per cent while pharma and FMCG stocks witnessed intraday profit booking
image for illustrative purpose
Mumbai, June 12: Benchmark indices witnessed no significant activity for the second consecutive day, while Sensex was down 33 points. Among sectors, media index gained 1.83 per cent while pharma and FMCG stocks witnessed intraday profit booking.
Technically, the index witnessed sluggish activity after a quiet opening. Short-term texture suggests 77,000 would be the key resistance zone for short-term traders, while 76,300 would act as a crucial support zone.
“We believe the market could rally towards 77,300-77,600 after a breakout of 77,000 On the other hand, below 76,300 the index could retest 76,000-75800 levels,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
A subdued to weak opening is on the cards for local markets owing to bearishness in several Asian indices. Domestic investors would be cautious ahead of the CPI inflation and IIP data to be announced post market hours today, and hence stock-specific activity could continue.
“Also, the May US inflation data and rate-setting decision would be keenly watched by global investors, as any increase in the number could prompt the Federal Reserve to delay its rate cut decision,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
