BSE Sensex and Nifty 50 posted record closing highs yet again on Monday, after rising for the third straight day.
BSE Sensex and Nifty 50 posted record closing highs yet again on Monday, after rising for the third straight day. BSE Sensex ended flat 60,078, up 29 points, while Nifty 50 index ended flat at 17,855. During intraday, the BSE Sensex hit a historic high of 60,412. Index heavyweights such as Reliance Industries Ltd, HDFC Bank, Maruti Suzuki, ICICI Bank, M&M contributed the most to the indices’ gain. The broader markets underperformed the equity benchmark BSE Sensex as the S&P BSE Midcap index closed flat while S&P BSE Smallcap index fell 0.13 per cent. India VIX, the volatility index, jumped nearly 7 per cent to end at 18.05 levels. Analysts see a range-bound trend in Nifty and expect consolidation movement for next one to two more sessions.
Rohit Singre, Senior Technical Analyst, LKP Securities
Index opened higher but was unable to hold highs and showed profit booking. The index managed to close a day at 17855 & formed a bearish candle for a second consecutive day. Strong base is formed near 17800-17740 zone holding above said levels we may see northward movement to be continue also any dip around said levels can use as to add fresh longs with keeping stop out level below 17700 zone, strong hurdle is coming near 17930 followed by 18k mark where one can look for to lock their long gains.
Vinod Nair, Head of Research, Geojit Financial Services
Due to profit booking in IT, Pharma and FMCG, domestic markets failed to uphold its winning streak to close flat in a volatile session. Realty stocks continued its rally on positive developments in the sector while the sentiments in the auto sector were lifted on expectation of better sales numbers for September. The market is also awaiting the release of August’s core sector output data and September’s manufacturing PMI data this week.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing small range movement on Friday at the swing high of 17947, the Nifty continued its consolidation movement on Monday and closed the day on a flat note amidst a range movement. After opening on an upside gap of 79 points, Nifty made an attempt to move up soon after the opening. Intraday profit booking triggered from a day’s high of 17943 levels and the minor upside recovery was seen in the mid to later part from a day’s low. The overall trend for the day was choppy. Another small negative candle was formed on the daily chart with minor upper and lower shadow. Technically this pattern indicate a consolidation movement in the market for the last two sessions post sharp upmove of Thursday. This market action signal a lack of sharp selling participation in the market at the new highs. Nifty on the intraday timeframe like 60 min signal a range bound action with minor weak bias in the last two sessions.
Minor intraday higher highs and lows pattern is observed and intraday support of 10 and 20 period moving average has been respected around 17815-17860 levels. This is positive indication for bulls to make a comeback. The negative divergence pattern in Nifty/RSI as per daily timeframe is still not confirmed and the broad market indices like midcap and small cap segments of NSE exchange have sustained with minor positive note on Monday despite negative divergence and bearish candle formation in previous session as per daily timeframe charts. The short term trend of Nifty continues to be range bound. This consolidation movement could continue for the next 1-2 sessions before showing upside breakout of the range movement. A decisive move above 17950 is likely to open the next upside of 18200 levels in the near term. Important lower support is placed at 17650.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
After making a high of 17943, Nifty closed flat at 17858 giving up the entire intraday gains. Such movements around the all-time high is not a good sign for traders in long positions. If nifty is not able to close above 17950 levels in the next few trading sessions, it may correct its support range of 17680-17720. Traders in long positions need to keep strict stop loss and may consider booking profits. New long positions can be initiated once Nifty closes above 17950 with high volumes for 18040 and 18080 as targets