Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed lower after a volatile session on June 08, dragged down by weak global cues. At close, Nifty was down 0.49% or 91.9 points at 18634.6. Volumes on the NSE continued to be on the higher side. Midcap index fell more than the Nifty even as the advance decline ratio fell to 0.55:1.
Global markets were mixed on Thursday as negative sentiments arising out of expectations of further interest rate hikes by major central banks and the fact that Eurozone has entered recession after its Jan-Mar GDP fell 0.1% was offset by optimism over more Chinese stimulus measures.
India's southwest monsoon, which waters more than half of India's farmland, has arrived over Kerala on June 8, Thursday, according to the Indian Meteorological Department after a one week delay.
Nifty formed a near Engulfing Bear pattern on daily charts. It could now face resistance from 18778, while 18531 could act as a support. In case the Nifty closes below this support on Friday, it could result in Engulfing Bear pattern on weekly charts and the downtrend could gather momentum.