Indian Market Trades Low After Five Days of Gains: Review by TradingBells
Indian markets witnessed profit booking in today's trading session after five days of gains. The markets are still hovering around their all-time highs. Markets are also waiting for US and China to sign a trade deal.
Review of today's trading session by Mr. Santosh Meena, Senior Analyst, TradingBells follows..
The market started the day with some profit booking after 5 days of rally but the undertone of the market is still strong as Midcap and Smallcap space is doing very well. Banking space some creates pressure in the market while metal, realty space is doing well today. Some PSU stocks are outperforming in today's trade where NBCC, NMDC, National Aluminum are leading the pack. Gas sector is the sector of the day after positive outlook by some institutional brokerage houses.
Nifty is trying to respect the support of 12300 level where if manages to hold this level then we can expect a smart recovery in the second half.
Global markets are in risk-on mood after escalation between US-Iran cooled off where they were cheerful today ahead of the signing of the US-China trade deal. The US lifts currency manipulator tag on China currency manipulator which led to positive sentiments across the global market today. Indian market ignored the sharp rise in inflation and moved higher though Banknifty is underperforming.
The undertone of the market is very strong where Midcap and Smallcap space is doing very well. Indusind bank witnessed sell-off after initial rally post its Q3 results because prima facie numbers look good but higher slippages and slowest loan growth were the cause of concern.
Technically, Nifty is in important supply zone of 12350-12400 but it is not showing any signs of weakness where if it manages to take out this resistance zone then we can expect a rally towards 12545/12700 levels in coming days while in the downside 12300 will act as an immediate support level; below this 20-DMA of 12205 will be next important support.