The benchmark Nifty snapped a four-day winning streak and closed Friday's session below 6000 - a psychologically important level. Overall it was a consolidation day for markets. The indices hovered around their previous closing values and finally settled on a flat note with negative bias.
The 30-share BSE Sensex closed at 19,966.93, down just 25.77 points from previous closing value. The 50-share NSE Nifty slipped 18.90 points or 0.31% to settle at 5,992.80. The broader indices saw a huge sell-off today. The BSE midcap index tumbled 2.3% and the smalllcap index cracked 3%.
Will Nifty close the year above 6000?
Technical Analyst , Mitesh Thacker believes that 6000 is psychologically important level but otherwise there is no technical importance to the level as of now. He is a little disappointed as according to him the markets are unlikely to bounce back.
“So it could be a well 120-125 point kind of range of market. 6050-6070 on the upside 5950 on the lower side, my belief is that next 2-3-4 days we will live in this range, we might consolidate before taking a definite action,” elaborates.
However, Jigar Shah, Research Head, Kim Eng Sec India is optimistic that the macro report from both India as well as outside India is very promising and encouraging and though investors might wait for the third quarter numbers to come in. “There is no major reason for shorting or rapid sell-off. That kind of situation looks fairly unlikely at this point of time,” Shah adds.
Bharat Shah, Director, ASK Investment Managers Private agrees that Indian markets are likely to surge ahead supported by strong gross domestic product (GDP) and third quarter earnings.
According to Bharat Shah, automobiles, pharmaceutical, consumer durable and agriculture related stocks are expected to do well.
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