Nifty intraday trend positive, may head to 17350; Bank Nifty below 35800 may lead to selling pressure

Benchmark indices BSE Sensex and NSE Nifty 50 traded buoyant on Tuesday, rising 1.5 per cent each, on the back of buying in auto, FMCG, PSU Bank stocks.

Sensex, Nifty, stock market
Nifty50 may take support at 17,200 levels and may face resistance at 17,450 levels. Image: Pixabay

Benchmark indices BSE Sensex and NSE Nifty 50 traded buoyant on Tuesday, rising 1.5 per cent each, on the back of buying in auto, FMCG, PSU Bank stocks. BSE Sensex soared 776 points or 1.4 per cent to settle at 57,356.61, while NSE Nifty 50 index rallied 246 points or 1.5 per cent to finish trade at 17,200.80. Stocks of index heavyweights such as Reliance Industries Ltd (RIL), Infosys, Bajaj Finance, L&T, State Bank of India (SBI), contributed the most to the indices’ gain. In broader markets, midcap stocks outperformed the equity frontliners. S&P BSE Midcap index jumped 1.6 per cent or 392 points to end at 24630.25. S&P BSE Smallcap index was up 0.76 per cent or 219.48 points to settle at 28,918.83. Volatility cooled down on Dalal Street with the India VIX index falling 9.74% to close just above 19 levels. Bank Nifty was up nearly one per cent.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The market showed a relief rally after two days of weakness. The upper area of 17300-17400 is expected to be a tough task for the market to surpass. Any lack of strength in further upside bounce at the highs could bring another round of selling pressure to retest lower support of 16800 levels.

Rupak De, Senior Technical Analyst, LKP Securities

The benchmark index Nifty has continued to remain in jumping jacks mode as Nifty ended significantly higher after a dismal trade in the previous session. However, no directional trend has been established even after a rally of about 250 points. The 200-DMA has acted as initial resistance; a further up move can be seen upon a move above 200-DMA. On the lower end, support is seen at 17000 whereas on the higher end, resistance is visible at 17450.

Mohit Nigam, Head – PMS, Hem Securities

On technical front, Nifty50 may take support at 17,200 levels and may face resistance at 17,450 levels. In case of Bank Nifty immediate support and resistance levels are 36,000 and 36,850 level respectively.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

While markets are in an oversold position, the falling yields in US markets and sliding crude oil prices came as a major respite for investors who partially covered their short positions. However, other concerns like China’s coronavirus problems, likely interest rate hike woes in the US and the conflict between Russia & Ukraine will continue to be potential market spoilers. Technically, once again the Nifty re-claimed the 17000 mark and succeeded to close above the 50-day SMA which is grossly positive for the markets. After a promising pullback rally the index is trading near the 200-day SMA. For the short term traders, the support has shifted to 17100 from 17000. We are of the view that the intraday formation is positive and it is heading towards 17300-17350. On the flip side, a quick intraday correction is not ruled out if the index trades below 17100 and below the same, it may retest the level of 17050-17000.

Kunal Shah – Senior Technical & Derivative Analyst, LKP Securities

The Bank Nifty index after a gap-up opening witnessed a sideways move. The index immediate upside resistance stands at 36600 and a break above this will lead to a further rally toward 37000-37100 levels. The downside support stands at 35800 and a break below this will lead to fresh selling pressure.

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