Nifty may hit 16,450 in near-term as support lies at 16,200; here’s what experts make of today’s trade

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August 10, 2021 4:12 PM

Recovering from the day's lows, BSE Sensex and Nifty 50 managed to settle in positive territory on Tuesday.

Nifty, Sensex, stock marketDomestic market remained highly volatile as the early gains were trimmed off following selling pressure in global markets. Image: Reuters

Recovering from the day’s lows, BSE Sensex and Nifty 50 managed to settle in positive territory on Tuesday. During intraday, Sensex hit a record high of 54,779.66, but then closed at 54,554.66, up 152 points or 0.3 per cent. The downside in the 30-share index was capped by gains in index heavyweights such as Bharti Airtel, HDFC, Kotak Bank, and Reliance Industries Ltd (RIL). Nifty 50 hit a fresh record high of 16,359 during intraday, but shut shop at 16,280, up 22 points or 0.13 per cent. Broader markets once again underperformed equity benchmarks. BSE MidCap index fell 0.85 per cent or 195 points at 22,762. Whil BSE SmallCap index finished at 26,065.95, down 2.05 per cent or 545.72 points. India VIX, the volatility index, gained 0.79 per cent to settle at 12.71 levels.

Rohit Singre, Senior Technical Analyst, LKP Securities

After a strong volatile session index managed to close a day on a positive note at 16280 and formed a Doji candle pattern on daily chart for the second consecutive day which again hints indecision in the markets. Nifty again respected the support zone of 16200 as expected & we witnessed good pull back from the same level which hints until holding above 16200 zone index may see some extension in existing consolidation zone of 16200-16350 zone & either side breakout will decide final direction move.

Palak Kothari, Research Associate, Choice Broking

Technically, the Nifty index has been trading in a range and hasn’t broken its previous day low and sustained above the same one, which indicates bullish strength in the counter. Furthermore, the Index has taken support from 50-HMA, which supports upside movement in the counter. A momentum indicator RSI & MACD is showing positive strength & Stochastic is also with positive crossover on the daily chart, which indicates a further bullish move. At present, the nifty index has immediate resistance at 16360 levels while downside support shifted up to 16150 levels.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Nifty traded in a 160 points range today. It took support at 16200 and made a new all time high of 16359 and took resistance there. It gave a closing of 16270, up by 10 points. The next up in Nifty will be seen once it closes above 16350 level with higher than average volumes. As long as Nifty remains over 15900, 16400 and 16450 levels will be seen on Nifty in the near future.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets climbed well above the 16300 mark and seemed all poised to close above it too. However there was a sharp and nervous sell off mid day which brought the index close to 16200. We recovered well but did not close above the 16300 level. Once we are successful in doing so, we will witness a rally to 16600 as the next target for the Nifty.

Vinod Nair, Head of Research, Geojit Financial Services

Domestic market remained highly volatile as the early gains were trimmed off following selling pressure in global markets. Concerns over an early withdrawal of asset purchase programs by the Federal Reserve and US CPI inflation data to be released this week impacted global market. However, strong support from large caps, especially from sectors like finance and IT, helped domestic main indices to end on a positive note. After a steady rally during the previous months, the small and mid-cap stocks are witnessing consolidation for the past few trading sessions while buying interest has shifted to large caps. The third wave of Covid and fall in liquidity will be a lethal combination for highly priced mid & small caps.

S Ranganathan, Head of Research, LKP Securities

What started as a sell-off in metal stocks dramatically triggered a sell-off today in the smallcap index after rallying for several months. The Midcap index and the PSU banks too were also not spared as both investors & traders booked profits. The index at close quite honestly was not reflective of the market mood as the breadth was very weak.

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