Sensex ends flat amid volatility, Nifty’s chart suggests range bound activity in near-term, support at 16500

BSE Sensex and Nifty 50 ended Monday’s choppy session on a flat note. BSE Sensex ended 94 points or 0.2 per cent down at 55,675, while NSE Nifty 50 index finished trade at 16569.55, down 0.1 per cent. Index heavyweights such as Reliance Industries Ltd (RIL), Asian Paints, L&T, Housing Development Finance Corporation (HDFC), Axis Bank and HDFC Bank among others contributed the most to the indices’ fall. Broader markets too performed in line with equity frontliners. S&P BSE SmallCap index finished trade at 22,740, down 35.15 points or 0.15 per cent, while S&P BSE Smallcap index settled 144 points or 0.5 per cent down at 26240. Nifty’s volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty50 index, ended 1.13 per cent up, to close above 20.20 levels. Nifty Bank too ended in green, rising 0.10 per cent.

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

Basically, the market has been exercising caution ahead of the credit policy announcement this week, and hence investors trimmed their position in rate-sensitive sectors such as realty. Technically, the Nifty found support near 16450 but failed to capitalise on it. The texture of the chart is indicating that a range bound activity is likely to continue in the near future. For day traders, 16500 would be the key support level to watch out, and above which the index could move up to 16650-16750. On the flip side, a fresh round of selling pressure is possible if the index trades below 16500. Any further decline could see the index retest the level of 16400-16350.

 Rupak De, Senior Technical Analyst at LKP Securities. Request you to use the views in today’s copy. 

Nifty remained volatile during the session. On the lower end, bulls have protected the crucial support of 16400, which led to a rally towards 16600. The trend is likely to remain positive for the near term as long as 16400 is held on a sustained basis. On the higher end, resistance is seen at 16800. The Bank Nifty has remained below the 50 EMA throughout the session. The momentum oscillator is a bullish crossover. Going forward, Bank Nifty may remain sideward to positive as long as it holds the crucial support of 35000. On the higher end, resistance is visible at 36000.

Mohit Nigam, Head – P,MS, Hem Securities

On the technical front, the key resistance levels for Nifty50 are 16700 and on the downside 16400 can act as strong support. Key resistance and support levels for Bank Nifty are 35600 and 35000 respectively.

Vinod Nair, Head of Research at Geojit Financial Services

Domestic market moved in tandem with the global peers to open weak and gradually recovered its losses following a positive start in Europe. Oil prices rose after Saudi Arabia raised their selling price adding to the current global inflationary pressure. Better than expected US job data triggered worries on Wall Street as it gives the Fed more room to hike rates. This volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks including RBI.