Stock Market Today, Nifty, Bank Nifty: Benchmark indices NSE Nifty and BSE Sensex may remain volatile on weekly F&O expiry amid mixed global cues. The Nifty futures on the Singapore Exchange (SGX) were trading 39 points or 0.22% higher at 17,693 in the early morning trade. Asian markets were trading mixed with China’s Shanghai Composite Index dipping 0.42%, South Korea’s KOSPI dropping 0.37%, Hong Kong’s Hang Seng rising 0.29% and Japan’s Nikkei 225 climbing 0.18%. The US market ended the overnight session mostly flat– Dow Jones Industrial Average (DJIA) fell 0.23%, S&P 500 dipped 0.01% and the tech-heavy Nasdaq rose 0.03%. On Wednesday, the NSE Nifty 50 fell 41.40 points or 0.23% to 17,618.75 and BSE Sensex tanked 159.21 points or 0.27% to 59,567.80. In sectoral indices, Bank Nifty fell 111.20 points or 0.26% to 42,154.00 and Nifty IT plunged 479.50 points or 1.77% to 26,687.45.
Nifty outlook
Nifty first support at 17574 and then 17500
An attempt for downward extension was seen yesterday as the previous day’s low was broken. IT. Further weakness below 17574 for the target of 17500. Buy dips near 17500. Nifty first support at 17574 and then 17500 while resistance at 17710 and 17750, according to Rahul Sharma, JM Financial.
Nifty fall below 17587 may trigger panic button
“A decisive fall below the 200DMA (17587) may trigger the panic button. In that case, Nifty might fall down towards the 17400 level, where the next level of support lies. The momentum indicator is indicating weakness with its bearish crossover on the daily timeframe. Therefore, the near-term trend looks negative, while the short-term set up remains buy-on dips until the Nifty falls below 17400 decisively,” said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty immediate resistance seen at 17750–17800
“Nifty has now approached a key support zone formed by Trendline breakout levels and 200SMA coinciding around 17550 – 17500 levels. For the weekly expiry, we sense prices to defend these key levels and aggressive traders can opt to buy very close around it for a strong bounce back. If in case the support is broken, then the correction may deepen, which we don’t see in the current situation. On the flip side, immediate resistance is now seen at 17750 – 17800 levels, where one can look to book profits,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.
Nifty range of consolidation likely to be 17500–17800
“Both Bulls and Bears are trying to defend their respective boundaries. The ideal strategy to trade this sideways consolidation is to take a contrarian view at the extremes of the range. So, traders should look for signs of strength around 17500 and go long. During this consolidation phase, we can expect sector rotation and stock-specific price action. The range of consolidation for Nifty is likely to be 17500 – 17800 for the next few trading sessions,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty outlook remains optimistic
“The outlook remains optimistic, and a buy-on-dips strategy will be employed until the Nifty’s important support level of 17550 is not breached on the downside. The volume profile indicates Index has strong support around the 17450-17550 zone. Coming to the OI Data, on the call side, the highest OI was observed at 17700 followed by 17800 strike prices while on the put side, the highest OI is at 17500 strike price,” said Deven Mehata, Equity Research Analyst at Choice Broking.
Bank Nifty outlook
Bank Nifty first support at 42030 and then 41892
Bank Nifty longs above 42320 for 42500/higher/ short below 41950. Bank Nifty first support at 42030 and then 41892 while resistance at 42341 and 42514, according to Rahul Sharma, JM Financial.
Bank Nifty resistance placed at 42500-42700
“Bank Nifty has support at 41500-41700 while resistance is placed at 42500-42700 range,” said Deven Mehata, Equity Research Analyst at Choice Broking.
Bank Nifty undertone remains bullish
“Bank Nifty index continued to trade in a narrow range one day before the weekly expiry. The options data suggest support at 42,000 and resistance at 42,500 where put and call writing respectively is visible. The undertone remains bullish as long as the index holds the support of 42,000 on the downside,” said Kunal Shah, Senior Technical Analyst at LKP Securities.