Stock Market Today, Nifty, Bank Nifty: Domestic equity indices may remain volatile on weekly F&O expiry. The Nifty futures on the Singapore Exchange (SGX) were trading 3 pts or 0.02% higher at 17,803.00 in the early morning trade. Asian markets were trading mixed with China’s Shanghai Composite index rising 0.04%, Japan’s Nikkei 225 climbed 0.58% while Hong Kong’s Hang Seng fell 0.06% and South Korea’s KOSPI dipped 0.14%. The US market also ended the overnight session on a mixed note with Dow Jones Industrial Average falling 0.18%, the tech-heavy Nasdaq rising 0.40% and S&P 500 climbing 0.15%. On Wednesday, the NSE Nifty 50 rose 42.95 pts or 0.24% to 17,754.40 and BSE Sensex climbed 123.63 pts or 0.21% to 60,348.09. In the sectoral indices, Bank Nifty rose 226.70 pts or 0.55 to 41,577.10, Nifty Auto climbed 0.84%, Nifty IT fell 0.38%, Nifty PSU Bank rose 0.69%, Nifty Realty dipped 0.68%.
Nifty outlook
Nifty remains in buy mode as long as it holds support of 17500
“The Nifty index remains in a buy mode as long as it holds the support of 17,500 on the downside where fresh put writing has been observed. The index’s immediate hurdle on the upside is at 17,800 and once surpassed will witness further short covering towards 18000 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Nifty range of consolidation likely to be 17400-17925
“On the daily charts, we can observe that Nifty, after a sharp rally in the previous couple of trading sessions, witnessed a day of consolidation. The zone of 17650 – 17600 acted as a strong support zone and witnessed buying interest. The hourly Bollinger bands are contracting and the hourly momentum indicator has a negative crossover, both of which indicate that consolidation is likely before it begins a trending move. From a short-term perspective, the range of consolidation is likely to be 17400 – 17925,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty must surpass 50-day EMA which is close to 17810
“In order to advance closer to the 18000 level, the index must now surpass the 50-day EMA, which is close to 17810 levels. 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 17900 followed by 18000 strike prices while on the put side, the highest OI is at 17600 strike price,” said Devan Mehata, Equity Research Analyst at Choice Broking.
Selling pressure likely to accelerate if Nifty slips below 17700
“We are of the view that as long as the index is trading above 17700 or 20-day SMA the uptrend formation is likely to continue, above which the market could move up to 17850-17875. On the flip side, below 17700 the selling pressure is likely to accelerate. Below the same, the market could retest the level of 17600-17550,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Nifty outlook likely to be favourable if it holds support level of 17601
“As long as Nifty maintains above its intraday support level of 17601, the outlook is likely to be favourable. Nifty level 17857 is the immediate goal as long as the Nifty 17601 support level holds. We anticipate a larger rebound at Dalal Street with stock-specific action as the main theme if the price closes above 17857,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.
Bank Nifty outlook
Bank Nifty immediate support at 41200
“Bank Nifty is likely to trade in the range of 41000-42000 but within the range, the undertone remains bullish and one should keep a buy-on-dip approach with immediate support at the 41200 level. The resistance of 42000 if taken out will open up the gates for a further up move towards 43,000 levels,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
Bank Nifty resistance at 42300-42500 range
“Bank Nifty has support at 41000-41200 while resistance is placed at 42300-42500 range,” said Devan Mehata, Equity Research Analyst at Choice Broking.