Stock Market Today, Nifty, Bank Nifty: Indian benchmark equity indices may fall further on Tuesday, after yesterday’s losses, as India’s CPI inflation in February remained above RBI’s tolerance range, stoking fears of more interest rate hikes. Investors are eyeing US CPI inflation data which is scheduled to be published today late in the evening. The Nifty futures on the Singapore Exchange (SGX) were trading 29 pts or 0.17% higher at 17,208.50 in the early morning trade. Asian markets were trading broadly in red with China’s Shanghai Composite Index falling 0.48%, Hong Kong’s Hang Seng plunging 0.98%, Japan’s Nikkei 225 tanking 2.45% and South Korea’s KOSPI tumbling 2.15%. The US market ended the overnight session mixed with Dow Jones Industrial Average falling 0.28%, S&P 500 dipping 0.15% while the tech-heavy Nasdaq rose 0.45%. On Friday, BSE Sensex tanked 671.15 pts or 1.12% to 59,135.13 and NSE Nifty 50 plunged 176.70 pts or 1% to 17,412.90. Bank Nifty tumbled 771.30 pts or 1.87% to 40,485.45. On Monday, Nifty sank 258 points to close at 17,154, under the 17,200 mark. Sensex followed suit, crashing almost 900 points to end at 58,237. Bank Nifty declined 2.27%, at 39,564, down by over 920 points.
Nifty short-term trend remains bearish; Buying range 16,600-17,035, SL at 16,500
“Nifty long-term technical supports at 17,035-16,600. 60% of stocks from NSE500 are below 200 DMA – highly oversold. Nifty Midcap 100 Index has still not broken the Feb low of 29,631 while Nifty & BN have broken. The short-term trend remains bearish for 17,035, post which a bounce back is expected upto 17,300. For medium term investors should look to accumulate into this volatility over the next few days – Buying range 16,600-17,035, SL at 16,500,” said Rahul Sharma, JM Financial.
“Nifty has fallen below the previous swing low on the daily chart. Besides, the index has closed below 200DMA, suggesting a rise in long-term bearishness. The momentum oscillator, RSI is in a bearish crossover. On the lower end, support is visible at 16950. On the higher end, resistance is placed at 17500,” said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty could move towards 16800-16600, if it falls below 17000
“Nifty 50 closed at its 5-month low on global market sell-off triggers, the texture is weak in the short term, as it has broken the 200-DMA at around 17400 levels. On a longer timescale, it is traveling in a downward-sloping channel formation. If it falls below 17000, we can expect further weakness towards 16800 and 16600. On the upside, 17500–17800 will act as a resistance area on any bounce back,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Nifty expected to touch 16950
“The daily momentum indicator has triggered a negative crossover which is a sell signal. Prices are trading along the expanding lower Bollinger band and the fall is likely to continue. Thus, both price and momentum indicators suggest a further downside. On the way downside, we expect the Nifty to touch the lower end of the falling channel (16950). On the upside, 20-day moving average placed at 17630 shall act as an immediate hurdle for the Nifty,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty immediate support at 17000
“Nifty has breached psychological 17250 levels, as 17000 will now act as immediate support, whereas resistance is placed around the 17400-17500 zone. OI Data indicates, on the call side the highest OI is witnessed at 17400 followed by 17500 strike prices while on the put side, the highest OI was at 17000 strike price,” said Om Mehra, Equity Research Analyst at Choice Broking.
“As far as levels are concerned, the psychological mark of 17000 for Nifty is in the vicinity now, followed by 16900. While on the flip side, the 200 SMA placed around the 17400-17450 odd zone is expected to act as a sturdy hurdle in a comparable period,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
Bank Nifty outlook
Bank Nifty support at 39296, then 38818 while resistance at 40544-41313
Bank Nifty could move towards 39000-38500, if it falls below 39300
“The overall structure of the Bank Nifty index is very weak. It mirrors global peers with the index falling the most in the last one month. It is near the critical demand zone, which was placed at 200-DMA at around 39500-39300 levels. If it falls below 39300, we can expect further weakness towards 39000 and 38500,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Bank Nifty remains in sell-on-rise mode
“Bank Nifty remains in a sell-on-rise mode with strong resistance at 41,000 where aggressive call writing has been observed. The index’s immediate support stands at 39,500 and can witness a pullback rally if it manages to hold it,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Bears have taken control of Bank Nifty
“Bank Nifty has formed a big bearish candle, indicating that bears have taken control. Nonetheless, the 40800 level is crossed, sell on the rise is advised for the short term,” said Om Mehra, Equity Research Analyst at Choice Broking.