Sensex snaps 3-day losing streak; Nifty support seen at 17000, likely to witness consolidation | The Financial Express

Sensex snaps 3-day losing streak; Nifty support seen at 17000, likely to witness consolidation

On the technical front, immediate support and resistance in Nifty 50 are 17000 and 17300 respectively.

Sensex snaps 3-day losing streak; Nifty support seen at 17000, likely to witness consolidation
Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. Image: Pixabay

BSE Sensex and NSE Nifty 50 ended nearly one per cent up on Wednesday, a day before weekly F&O expiry. BSE Sensex ended 479 points or 0.8 per cent higher at 57,626, while NSE Nifty settled 140 points or 0.8 per cent up at 17,124. Stocks of index heavyweights such as Axis Bank, Reliance Industries Ltd (RIL), Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank, and L&T among others contributed the most to the indices’ gain. Broader markets too gained in line with equity frontliners. S&P BSE MidCap index rose 164 points or 0.7 per cent to end at 24922, while S&P BSE SmallCap index gained 0.22 per cent or 61.50 points to settle at 28651. Bank Nifty jumped more than 1 per cent to settle at 39,119. India VIX, the volatility index, fell 1.5 per cent to settle at 20.18 levels.

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

Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. However, the recovery doesn’t seem to be sustainable as multiple negative factors are at play. Technically, the Nifty took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. As long as the index is trading above 17000 mark, the pullback formation is likely to continue. Above the same, the index may touch the level of 17225-17275. On the flip side, below 17000, the index could slip till 16900.

Vinod Nair, Head of Research, Geojit Financial Services

The domestic market was successful in overcoming the weak cues from global peers as it focused on quarterly earnings. The IT earnings season got off to a strong start, which improved the sector’s spirits. In the midst of escalating geopolitical unrest and the prospect of a worldwide economic downturn as the IMF revised down its forecast for global growth, European markets continued to slide. At the same time, oil prices dropped due to sluggish demand amidst recession fears and tightening curbs in China, which was taken positively by the domestic market.

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Mohit Nigam, Head – PMS, Hem Securities

Globally, Asian markets were largely down after a recent run of losses due to worries about the global economy faltering and the impact of increasing interest rates on company profits. European markets were generally in the red as recession fears persisted, with US President Joe Biden admitting in an interview on Tuesday that a very slight recession was likely. On the technical front, immediate support and resistance in Nifty 50 are 17000 and 17300 respectively. Bank Nifty immediate support and resistance are 38700 and 39500 respectively.

Om Mehra, Technical associate, Choice Broking

OI data indicates, on the call side the highest OI witnessed at 17400 followed by 17300 strike prices while on the put side, the highest OI was at 17000 followed by 16800 strike price. Technically Nifty has formed a bullish candle in the daily chart, as it closed above 17100, an important Fibonacci level. The overall structure shows that the index is likely to witness consolidation and short term buying in the range of 17000-17300. Once it sustains 17340 levels we can expect a rally till 17500 levels in coming days. Indicators such as RSI and MACD are showing some strength to lead towards upside in the daily chart. On the other hand, Bank Nifty has support at 38500 levels while resistance is placed at 40000.

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First published on: 12-10-2022 at 04:19:47 pm
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