Sensex snaps gaining streak, Nifty continues to face crucial resistance in 17100-17200 zone

S&P BSE Sensex fell 191 points or 0.33% to close at 57,124 while the NSE Nifty 50 index was down 68.85 points or 0.40% to end at 17,003.

Nifty
Bank Nifty along with broader markets closed in red. (Image: REUTERS)

Domestic markets failed to continue their upward march on Friday, ending down with losses. S&P BSE Sensex fell 191 points or 0.33% to close at 57,124 while the NSE Nifty 50 index was down 68.85 points or 0.40% to end at 17,003. On Sensex HCL Technologies was the top index gainer, up 3%, followed by Tech Mahindra, Asian Paints, and Infosys. NTPC, Power Grid, and Mahindra & Mahindra were the top laggards. Bank Nifty ended almost 1% lower at 34,857, broader markets mirrored the fall. India VIX gained 2% to close above 16 levels. 

Nagaraj Shetti, Technical Research Analyst, HDFC Securities –

“The recent pullback rally of the last three sessions seems to have completed around the strong overhead resistance of 17150-17200 levels. There is a possibility of further weakness down to 16700-16650 levels by next week. Any upside bounce from here could be a sell on rise opportunity.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“After a strong volatile sessions Index managed closed a week on positive note at 17004 with minimal gains and formed a bullish hammer sort of candle pattern on weekly chart which consider being a bullish reversal candle by nature. On the downside index has formed a strong support zone 16900 &  if index managed to hold above said support zone then one can expect a positive moment in coming sessions but if failed to hold then some profit booking towards 16800-16700 zone may see, on the higher side stiff hurdle is coming near 17100-17200 zone.”

Yesha Shah, Head of Equity Research, Samco Securities –

“Nifty 50 index quickly bounced after testing the support of 16,400 but closed the week nearly unchanged. Nifty is also now trading within a downward sloping channel and continues to remain choppy. Bank Nifty index which was already reflecting weakness has broken the crucial support level and may retest the levels of 34,000. The overall undertone of the market has turned mildly bearish. Traders are advised to maintain a bearish bias as the upside is likely to remain capped at a resistance of 17,350. A decisive break above this level will negate this bearish outlook.”

Ajit Mishra, VP – Research, Religare Broking –

“Markets are closely eyeing the COVID situation and any positive news could only help the index to make any sustainable up move else volatility will continue. Interestingly, we’re seeing a mixed trend across sectors so traders should focus on IT, select FMCG, pharma for long trades while the banking pack may continue to trade subdued.”

S Ranganathan, Head of Research at LKP securities –

“A range-bound day of trading ahead of Christmas to end the week as this month quite clearly belonged to the IT sector which stood tall amidst extreme volatility as cost-push inflation across sectors is keeping street worried on the impact in the hands of the consumer. While buoyancy in exports and tax collections coupled with the success of the PLI schemes are positives, there are many sectors where consolidation is waiting to happen which is where longer-term investors need to focus in the present corrective phase.”

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