Domestic indices are expected to remain volatile on monthly F&O expiry, following global market trends. The Nifty futures on the Singaporean exchange were trading 58 pts or 0.33% higher at 17,615.50 in the early morning trade. Asian markets were trading mixed. The US stock market also ended the overnight session on a mixed note. On Wednesday, the Nifty 50 fell 272.40 pts or 1.53% to 17,554.30 and BSE Sensex sank 927.74 pts or 1.53% to 59,744.98. All the sectoral indices ended in red with Bank Nifty tanking 677.70 pts or 1.67% to close at 39,995.90.
Nifty could slip to 17500-17475 if it trades below 17600
“For the traders now 17600 would be the key level to watch out for and above the same the pullback move will continue till 17700-17750. On the flip side, below 17600 the index could slip till 17500-17475. Contra traders can take a long bet near 17475 with a strict support loss at 17440,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Nifty to test its 200-DMA which is placed around 17350
“Technically, the Nifty experienced selling pressure from the 18100-18200 supply zone, where the Adani Saga began. Nifty is likely to complete its unfinished business to test its 200-DMA, which is currently placed around 17350. The same is true for Banknifty, where the 200-day moving average is located near the 39300 level. The Nifty should continue to respect its 200-day moving average since the long-term picture is still favourable; at this level, we can anticipate fresh buying enthusiasm,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Nifty’s next support seen near 17000
“Technically, the immediate support level for Nifty future on the downside is at 17350; if it drops below that level, the next support would be close to 17000,” said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
Nifty resistance placed at 17775 – 17820 levels
“Both price and momentum indicators are suggesting a further decline in Nifty in the coming trading session. On the way down we expect the Nifty to retest the recent swing low of 17350 which coincides with the 200-day simple moving average and the recent swing low it touched on the day of Budget. On the upside the hourly moving averages and the gap area formed today in the range 17775 – 17820 shall act as a stiff resistance,” Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty Outlook:
Bank Nifty support placed at 39750
“After yesterday’s brutal sell-off, next support for Nifty Bank will be at 39750 on the Daily charts. A close below this level could lead to a target of 39420. Strong resistance will be at 40673,” said A R Ramachandran from Tips2trades.
Bank Nifty’s next support located at the 39500
“The 40000 level serves as a support for Bank Nifty future; if this level is broken, Bank Nifty future may go towards its next support, which is located at the 39500 level,” said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
Bank Nifty stop loss at 39300 level is necessary
“Bank Nifty to fall towards the next support which is at 39500 or 39400, which was also the budget day low. If Bank Nifty falls to the 39500 level then enter contra trade, however, stop loss at the 39300 level is necessary. Resistance will lie at the 40100 and 40350 levels,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Bank Nifty can witness pullback rally towards 40600/ 40800
“The Bank Nifty index continued to witness selling pressure from the higher levels. The index is now trading in oversold territory and if it sustains above 40000 can witness a pullback rally towards 40600/ 40800 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.