Market is indecisive between bulls and bears

Mumbai, June 23

Today, the benchmark indices corrected sharply. The Sensex was down by 511 points. Among sectors, the Media index outperformed today, rallied 4 per cent, whereas the IT index was the top loser, shedding nearly 1.52 per cent.

Technically, on the backdrop of weak global sentiment, our market opened with a gap down. However, after an early morning intraday correction, the market took support near the 20-day SMA (Simple Moving Average) and reversed sharply. On daily charts, it has formed an inside body candle, which indicates indecisiveness between the bulls and the bears.

“We believe that currently, the market is witnessing range-bound activity, and the intraday setup suggests that non-directional activity is likely to continue in the near future,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

On the downside, 81,500-81,000 would act as key support zones for bulls, while 82,300-82,500 will be the crucial resistance areas. However, below 81,000, the uptrend would become vulnerable.

The entry of the US into the Israel-Iran conflict heightened tension as panic selling by investors triggered major correction in early trades. Also, if the oil prices shoot up rapidly due to the ongoing war, higher import bills would lead to fast declining local currency against the dollar and weigh on inflation

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “However, FIIs turning out buyers of local shares worth over Rs 10,000 crore in the past 4 sessions shows that India's strong fundamentals continue to attract foreigners despite global uncertainty.”

EoM.