Stock Market Today, Nifty, Bank Nifty: Domestic indices to remain under pressure on Monday amid mixed global cues. The Nifty futures on the Singapore Exchange were trading 15 pts or 0.09% lower at 17,527.50 in the early morning trade. Asian markets were trading mixed with China’s Shanghai Composite index rising 0.17%, Hong Kong’s Hang Seng climbing 0.16% while Japan’s Nikkei 225 falling 0.05% and South Korea’s KOSPI dropping 0.99%. The US markets ended Friday’s session in the red territory with Dow Jones Industrial Average tanking 1.02%, S&P 500 slipping 1.05% and the tech-heavy Nasdaq sinking 1.69%. On Friday, the NSE Nifty 50 fell 45.45 pts or 0.26% to 17,465.80 and BSE Sensex plunged 141.87 pts or 0.24% to 59,463.93. Sectoral indices ended mixed with Bank Nifty falling 92.15 pts or 0.23% to close at 39,909.40. Nifty Auto dipped 0.87%, Nifty IT dropped 0.27%, Nifty Pharma rose 0.23% and Nifty Oil & Gas climbed 0.77%.
Nifty major level 17050 eyed before it slips into multi-month downtrend
“The key level that will be in focus, early on will be 17353, the budget day’s low, also signified by the close proximity of 200DMA at 17368. The closest barrier on the higher side will be 17620, the reaction high of last week. The major level that we will be eying before Nifty slips into a multi-month downtrend would be 17050, while a weekly close above 17740 will be key for short-covering prospects,” said Anand James, Chief Market Strategist at Geojit Financial Services.
Investors to take cues from macro data including GDP and PMI numbers
“Markets declined continuously for seven trading sessions with Nifty closing near three weeks low. In the near term, we expect the market to consolidate in the absence of any fresh trigger. However, stock-specific action could be seen. This week investors will take cues from macro data including GDP and PMI numbers that would be released. Auto sector stocks would be in focus on the back of monthly sales data to be announced next week,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Nifty to target level of 17350; trend remains negative
“On the way down the Nifty is trading around the crucial support trendline derived by joining a previous couple of swing lows. On the hourly charts, a positive divergence is developing and the hourly momentum indicator also has a positive crossover which indicates that a bounce is possible. The bounce is likely to be temporary in nature and is unlikely to result in a trend reversal. The daily momentum indicator has a negative crossover which is a sell signal. Overall, the downtrend is still intact and any bounce should be used as an opportunity to create fresh short positions. We expect Nifty to target a level of 17350 from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty significant hurdle seen at 17770; support placed at 17130
“Technically, we are in a short-term decline, but we are very close to the 200-day moving average’s critical support level, which also happens to be low for the budget day. Bulls will therefore attempt to protect the Nifty’s 200-day moving average. If Nifty is able to maintain its 200-DMA, the index would form a double bottom, which might trigger a market rebound. On the upside, the 20-DMA near 17770 will continue to serve as a significant hurdle; above it, we may anticipate a short-covering move in the direction of the 18000–18100 range. However, there will be more selling pressure if Nifty is unable to hold its 200-DMA, and 17130 will be the next support level,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Bank Nifty Outlook:
Bank Nifty further selling pressure anticipated in direction of 38500
“In Bank Nifty
Bank Nifty stuck in range of 39500-40500; investors should keep sell-on-rise approach
“The Bank Nifty index is stuck in a broad range between 39500 and 40500 however the undertone remains bearish and one should keep a sell-on-rise approach. The index has been trading in a downtrend with lower high and lower low formation intact. The index will witness large moves once it breaks out of the mentioned range. The momentum indicator RSI is trading below the level of 30 which confirms the weakness,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.