Domestic indices NSE Nifty 50 and BSE Sensex opened lower on Wednesday as a result of negative global cues, and swung between gains and losses amid volatility. The equity markets closed flat with Nifty settling at 18,122, while Sensex ending 0.03% lower at 60,910. Bank Nifty shed 0.07% to end at 42,827. The broader markets closed primarily in green, with Nifty Microcap 250 gaining 0.6%. Sectorally, the Nifty Auto index rose by 0.66% with constituents TVS Motors, M&M and Maruti leading the gains.

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Markets Decoded: Low volumes, indices waver

“Broad market indices ended in the positive but advance decline ratio fell to 1.34:1 from the high levels over the past two days. Volumes on the NSE continued to be on the lower side. Global equities traded sideways on Wednesday after China took further steps towards reopening its COVID-battered economy; however hopes for an economic rebound were moderated by near-term worries over rising cases.” – Deepak Jasani, Head of Retail Research, HDFC Securities

“Market wavered between gains and losses with investors taking their position around the flatline as mixed global cues troubled them to take a firm one-sided move. US stocks were weak as the trade deficit data suggested strength in the economy, raising concerns about the Fed’s tightening stance. However, steps toward reopening the Chinese economy increased the prospect of demand recovery.” – Vinod Nair, Head of Research, Geojit Financial

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Nifty Technical Outlook: Index range-bound, resistance around 18155-18173

“Nifty seems to have run into a roadblock after a two day rise. However a small intraday range does not give enough signals for the future trend. Nifty could now face resistance in the 18173-18203 band and take support from 17967-17977 band in the near term.” – Deepak Jasani, Head of Retail Research, HDFC Securities

“During the day, the Nifty remained range bound as traders awaited a clear direction. On the higher end, it failed to sustain above the 50 EMA, whereas on the lower end, it sustained above the support of 18,070. Going ahead, a decisive move above 18,155 will be required for a further directional upmove. On the lower end, support is intact at 18,070 (sustain/closing).” – Rupak De, Senior Technical Analyst, LKP Securities.