Indian equity markets ended the day in red amid a volatile session, after opening and trading in green in the morning trade. BSE Sensex was down 304 points and closed at 57,684.82 while Nifty 50 fell nearly 70 points to settle at 17,245.65. Banks, autos and FMCG stocks were laggards on the NSE. Pharmaceuticals and metals were among the gainers on Sensex. Uncertainty on the global front combined with volatility in oil prices as well as aggressive stance from the US Fed will keep investors on their toes. In such a scenario, analysts suggest sticking to the sectors or themes which are doing well. Nifty support placed at 17,000, resistance at 17,400.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd
“While the overall trend is positive, we expect market to consolidate in near term in the absence of any major news flow or developments. Markets are facing headwinds from the Russia-Ukraine conflict, volatility in Oil prices as well as aggressive stance from US central bank. Also second day of hike in domestic retail fuel prices added to overall cautious sentiments. Nifty needs to hold and close above 17,350 for an upmove towards 17,500-17,750 levels. Strength in heavyweight sectors like Metals, Pharma and Oil & Gas are providing the much needed support to the market,.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty capitulated the early gains as it failed to sustain the selling pressure at the higher level. The 61.80% Fibonacci retracement around 17330 has acted tough resistance on a closing basis. Therefore, Nifty needs to push itself above 17330 decisively to witness meaningful upsides over the next few days. On the lower end 17200 is likely to act as immediate support.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“The Nifty index ended lower by 0.4% to close at 17,245 levels. Meanwhile, sectoral indices traded mixed wherein Auto, Banking and Capital Goods ended with losses whereas Metal, Healthcare and Power ended with gains. The move in the index so far shows consolidation after two weeks of rebound and it’s healthy. However, the prevailing uncertainty on the global front combined with the lack of any domestic trigger is keeping the participants on their toes. In such a scenario, we feel it’s prudent to stick with the sectors or themes which are doing well but avoid going overboard.”
Mohit Nigam, Head – PMS, Hem Securities
“On the technical front immediate support and resistance level for Nifty 50 are 17000 and 17400 respectively. For Banknifty 35800 and 36600 are immediate support and resistance respectively.”
Palak Kothari, Research Associate, Choice Broking.
“Technically, the nifty50 has taken resistance from the horizontal line and formed a bearish candle on a daily chart which suggests weakness for next trading day. Momentum indicator STOCHASTIC in trading with negative crossover on daily charts which indicates downside movement can be seen. Moreover, the index has managed to close above 50-DMA sustained above the same can show northward direction. Further any positive trigger from the geopolitical tensions can ease the selling pressure. The Nifty may find support around 17100/17000 levels while on the upside 17400-17500 may act as an immediate hurdle for the index. On the other hand, Bank nifty has support at 35500 levels while resistance at 37000 levels.”