Sensex, Nifty closed with losses for the second day straight but recovered from intra-day lows in the dying hours of trade. Midcap and smallcap indices outperformed.
Domestic equity markets continued to remain volatile for the second day in a row, ending with losses. S&P BSE Sensex recovered from intra-day lows and closed 254 points or 0.43% lower at 59,4113. NSE Nifty 50 turned positive during the day but failed to hold gains and closed 37 points or 0.21% lower at 17,711 points. Midcap and smallcap indices closed with gains while private bank stocks were among the top laggards. For the monthly expiry session, analysts believe Dalal Street could remain range-bound. However, technical analysts believe bulls could still come back into action if support in the range of 17500-17600 is respected.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –
“Markets witnessed a highly volatile trading session, which was marked by weak global cues but benchmark Nifty once again took support near the 10 day SMA or 17600 and reversed sharply. After yesterday’s sharp intraday fall, the index has formed an inside candle pattern which indicates indecisiveness between bulls and bears. In the run-up to monthly F&O expiry, the market may continue with the narrow range activity. For day traders, 17800 -17850 would be the key resistance level while 17625-17590 could act as a strong support.”
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel One –
“The monthly F&O expiry day could be interesting as the market is showing some uncertainty and rising VIX levels could lead to some higher volatility. The level around 17575 would be the crucial support and if this is breached, then we would expect some deeper price wise correction in coming days. On the flipside, 17800 and 17900 are the immediate resistances to watch out for. Traders are advised to continue to trade with a sector/stock specific approach and avoid aggressive positions.”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –
“We are still within the range of 17500-17950; it is mandatory for either side to be taken out if we want to trade a meaningful move. Until then, we will witness choppy or sideways movements. The macro trend is still positive but from a trading perspective one needs to be cautious and diligent. Hasty decisions in trading can have fatal consequences.”
Sachin Gupta, AVP, Research, Choice Broking –
“Technically, the index is hovering above the Middle Bollinger Band formation and also moving above 50-SMA, which indicates a bullish presence in the counter. Moreover, the index witnessed a positive crossover in Stochastic. At present, the Nifty has immediate support at 17500 while resistance lies at 17900/17950 levels.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index opened a day with a gap down but managed to show some positivity and closed a day at 17712 with minimal loss and formed a bullish candle after forming three consecutive red candles. Index again respected the support zone of 17600 so going forwards also it will be immediate & good support zone followed by 17500 zone also any dip near mentioned support zone can be again buying opportunity with keeping stop out level below 17500 zone, resistance is coming near 17800 zone followed by 17900 zone and traders can book profit around said levels.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Domestic market started on a very negative trend due to global sell-off on Tuesday & high crude prices. Spiking US treasury yields and slowing economy were impacting growth stocks. During the day, European & Asian markets recovered and crude prices stabilized. Indian growth-oriented sectors like Energy, Metals and Pharma also recovered strongly but selling continued on other sectors like private sector banks & consumption.”