S&P BSE Sensex closed 28 points lower at 54,526 points while the NSE Nifty 50 ended 2 points higher at 16,282.
Domestic benchmark indices rebounded from intra-day lows in the dying hour of trade on Wednesday to close flat. S&P BSE Sensex closed 28 points lower at 54,526 points while the NSE Nifty 50 ended 2 points higher at 16,282. Tata Steel closed 3.8% higher as the top Sensex gainer, followed by NTPC, Power Grid, and Reliance Industries. On the other end of the table, Kotak Mahindra Bank was down 1.9% as the worst Sensex performer of the day, followed by Bajaj Auto, Sun Pharma, and Nestle India. Bank Nifty failed to mirror the up-move and closed 0.63% lower on Wednesday. Broader markets were largely in the red, except the Nifty Midcap 50 index that closed 0.26% higher.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities-
“Benchmark Nifty witnessed a technical sell-off to slip below the level of 16300. For the last four trading sessions, the index is trading within the range of 16180-16350 levels. The texture of the chart suggests narrow range activity is likely to continue in the near future. For day traders, the 16180 level would be the key support level and trading above the same could see the uptrend formation likely to continue up to 16350. Any further upside in the market may lift the index up to 16400-16425 levels. On the flip side, the uptrend would be vulnerable below 16180.”
S Hariharan, Head – Sales Trading, Emkay Global Financial Services –
“After a 6-month period of consistent out-performance by mid & small-caps over large-caps, this week has seen a correction in the trend, with a sharp deterioration in market breadth. Both mid-cap & small-cap indices are down 5-7% over the last 3 sessions. A spate of ongoing IPOs is one possible explanation for the reallocation of funds, as also is cooling risk-on sentiment from foreign portfolio investors. Commodities prices have begun to cool in response to a stronger dollar and slowing industrial activity in China – as a result, very strong long positioning in Metals stocks is getting shaken out.”
Sachin Gupta, AVP, Research, Choice Broking –
“Technically, the nifty index has been trading in a range with the support of 16200 levels as in the last three trading sessions; we witnessed closing above the 16200 mark, which acts as immediate support for the counter. Furthermore, the Index has indicated a positive crossover between 9 & 21 days EMA, which supports upside movement in the counter. A momentum indicator RSI & MACD is showing positive strength on the daily chart, which indicates a further bullish move. At present, the nifty index has immediate resistance at 16360 levels while downside support shifted up to 16200 levels.”
Mohit Nigam, Head – PMS, Hem Securities –
“Benchmark indices closed on a flat note amid high volatility. Midcaps and Smallcaps have recovered sharply after BSE’s clarification in the new rule for “Add-on Price Band Framework”, this new rule had triggered a major sell-off in small cap and midcap stocks today and yesterday. Strong buying is seen in Nifty Metal (+3.14%) with Tata Steel and JSW Steel as the top gainers in Nifty 50 today. We believe that this new rule is limited to only a few illiquid stocks and it would not have any significant negative impact on the overall market. These small shakeouts are part of a bull market and it may give us a good opportunity to accumulate quality stocks in dips. On the technical front, immediate support and resistance for Nifty 50 is 16100 while 16400 respectively.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Following continued selling in broader markets and weak Asian and US peers, Indian indices shed its early gains, however, late recovery helped the market to close the day on a flat note. Measures taken by BSE to curb excessive price movement in smaller stocks nudged selling pressure in small and mid-cap stocks while a clarity from BSE on limiting its restrictions to penny stocks gave some relief. Mainstream sectors succumbed to profit-booking while metal, energy and infra sectors traded against the trend.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index opened a day with a gap but unable to sustain on highs & witnessed some profit booking and after a good volatile session managed to close at 16282 forming a hanging man sort of candle pattern on the daily chart which represents bearish reversal. The index breached its narrow consolidation zone in the beginning but again backed in the same which shows strong support is placed at 16200-16150 zone and if managed to hold above-said levels we may touch upper band of the range which is at 16350 zone.”