Domestic equity market benchmarks BSE Sensex and Nifty 50 ended nearly half a per cent up on Monday, paring all the intraday losses. S&P BSE Sensex added 231 points or 0.40% to close at 57,5923 while the NSE Nifty 50 index gained 69 points or 0.40% to settle at 17,222. Index heavyweights such as Reliance Industries Ltd (RIL), ICICI Bank, Bharti Airtel, Axis Bank, and ITC were among top index contributors. Broader markets ended lower, with S&P BSE Midcap index falling 0.4 per cent or 94 points to end at 23,696, while S&P BSE SmallCap ended 147 points or 0.53 per cent down. Analysts say that the short term trend of Nifty continues to be a range bound.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After a decisive upside breakout of important cluster resistance around 16800-17000 levels recently, the market showing inability of witness sharp follow-through action subsequently indicate a lack of strength of the bulls. On the other way, a continuation of range movement and repeated testing of important support of 17000 levels may not be a good sign for the market to sustain the highs. The short term trend of Nifty continues to be a range bound. Emergence of buying interest from near the support of 17K mark could be a cheering factor for bulls to make a comeback. But, the sustainable upmove could only occur above 17500 levels, which could then open upside targets of around 17600-17800 levels for the near term.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets once again witnessed sideways movement but finally managed to end on a higher note because of sharp gains in banking and oil & gas stocks. Technically, one more time the Nifty took the support near 17000 or 200 day SMA and bounced back sharply to close above the 50-day SMA. But the broader texture of the market is still non directional. In the near future, as long as the index is holding the 17100 level, the market is likely to retest the level of 17325-17400. However, if the index falls below the same, it could trigger further weakness till 17000-16950.
Devarsh Vakil – Deputy Head Retail Research, HDFC Securities
The market breadth, indicating the overall health of the market, was weak. We recommend traders to maintain long positions with 16800 as stop loss. The trend of the market is bullish and chances of moving up from the current consolidation looks much higher.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers
Indian markets opened mixed and soon entered in negative territory in morning session following mixed Asian market cues. during the afternoon session markets continued to trade in red as Sentiments were fragile as depositories data showing that overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. During the closing session markets showed some strength and scaled back from lows to trade positive as downside remained cap as statement from Niti Aayog Chairman that India can double its economy in about 7-8 years if it grows at 8 per cent, which is feasible as the country has sustained a growth rate of 8.5 per cent earlier for a long time provided comfort to investors.