Markets settled almost flat today amid volatility, mainly pressurised by weakness in the banking space. After an initial uptick, profit taking at the higher level pushed the index lower. However, movement on stock-specific front kept the traders busy. Cues were mixed on the domestic front as some support came in with PM’s announcement of several schemes on New Year’s Eve, but mixed auto sales figure and decline in manufacturing growth hit the sentiment.
The situation improved with rebound in select index majors from auto, metal, cement to the realty space, which completely trimmed the intraday losses and helped the index to close flat. The Nifty closed the day 6.30 points down at 8179.50, while the Sensex ended at 26595.45, down by 31.01 points.
“The Nifty moved on expected lines on Monday and we feel it’ll remain so in near future. So, it is better to continue with stock-specific trading approach and choose stocks from the preferred list of sectors, i.e. auto, energy, media and private banking for short-term buying,” said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
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Giving his views on the market, Sameet Chavan-Chief Analyst- Technical & Derivatives, Angel Broking, said, “Today, we saw an attempt of breaking 8200 on the Nifty. But it was a bit feeble in the opening trades. However, a smart recovery in the second half was so encouraging; leading to a positive crossover in ‘5 & 20 EMA’ combination on daily chart.”
In addition, on the oscillator front, the ‘RSI-Smoothened’ has confirmed a ‘1-2-3’ pattern, which is an indication of breaking a recent swing high of 8274.95 quite soon. “Going ahead, we maintain our optimistic stance on the market and expect the Nifty to move towards 8229–8274 in the forthcoming session. On the flipside, 8133–8100 are now likely to provide a decent support. We are now seeing a lot of trading opportunities in individual stocks and hence, traders are advised to focus on such developments to fetch higher returns,” he said.