Sensex snaps 3-day gaining streak, Nifty needs to sustain 16300 to hit 16700; check support, resistance

On the technical front, the key resistance level for Nifty 50 is 16,300 and on the downside, 16,000 can act as strong support.

Sensex snaps 3-day gaining streak, Nifty needs to sustain 16300 to hit 16700; check support, resistance
The short term trend is likely to remain positive as long as Nifty holds above 16000. Image: Pixabay

BSE Sensex and NSE Nifty 50 snapped three-day gaining streak and flat with a negative bias on Monday. S&P BSE Sensex fell 87 points or 0.16 per cent down at 54,395, while NSE Nifty 50 settled at 16216, down 4 points. Stocks of index heavyweights such as TCS, Infosys, Bharti Airtel, HCL Tech, L&T, and Wipro contributed the most to the indices’ fall. On the flip side, Reliance Industries (RIL), ICICI Bank, HDFC Bank, M&M, and Axis Bank  stocks capped the losses in the indices’. Bank Nifty ended 1 per cent up at 35,470 levels. India VIX, settled 0.14 per cent down, at 18.37 levels.

Vinod Nair, Head of Research at Geojit Financial Services

As the domestic market turned its focus towards quarterly results, the weak start of IT earnings wounded the sentiments, forcing benchmark indices to open on a weak note. However, with support from banking, metal and energy stocks, the domestic market managed to pare its losses to close flattish. India’s June inflation data, which is due for tomorrow, is expected to remain in line with May’s inflation rate of 7.04%. Meanwhile, the US inflation data due on Wednesday is expected to show a further increase from its current peak level of 8.6% during May.

Om Mehra, Research Associate, Choice Broking

Nifty has formed a bullish candle on the daily chart. The chart pattern suggests that if Nifty crosses and sustains above 16300 levels it would witness buying which would lead the index towards 16500-16700 levels. The daily and weekly strength indicator RSI is moving upwards indicating positive bias. The recovery in Nifty from their recent lows indicates the resilience of the markets and its potential to scale higher. Rupee continues to trade weak against USD as it hit lifetime low of 79.43 would be a concerning factor in coming days. The market sees a slight change in investment strategy from sell on rallies in June to buy on dips in July. Corporate earnings and macroeconomic data from the domestic as well as global markets will influence Dalal Street this week.

Mohit Nigam, Head – PMS, Hem Securities

On the technical front, the key resistance level for Nifty 50 is 16,300 and on the downside, 16,000 can act as strong support. The key support and resistance levels for Bank Nifty are 35,100 and 35,800 respectively.

Rupak De, Senior Technical Analyst at LKP Securities

The benchmark Nifty remained sideways during the session. On the daily timeframe, the index has sustained above its near-term moving average. The momentum oscillator RSI maintains its bullish crossover. The short term trend is likely to remain positive as long as it holds above 16000. On the higher end, resistance is visible at 16300.

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