Volatile session sees Sensex, Nifty end flat; here’s what experts make of today’s trade

In a volatile trading session, Sensex ended 303 points down from day’s high while Nifty 50 managed to hold above 14,550

Technical analysis Nifty
We expect the Nifty to play down towards the next support of 13707 in the coming sessions. This level coincides with the 50 day SMA.

In a volatile trading session, Sensex ended 303 points down from day’s high while Nifty 50 managed to hold above 14,550 as both the benchmark indices closed the trading session flat. Broader markets too closed in the red, except Nifty Smallcap 50, up 0.12%. Among Nifty sectoral indices, only Nifty Realty, Nifty Pharma, and Nifty Financial Services closed the day with losses. Nifty PSU Bank index zoomed 3.27%. Mahindra & Mahindra shares gained 6% while State Bank of India jumped 4.8%. India VIX, the volatility index gained 1.94% to end the day above 23 levels. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Indian equity Benchmark indices ended little changed on Jan 13 after a highly volatile session. Asian stocks mostly rose on Wednesday, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while oil prices touched a one-year high. Nifty saw intraday volatility and poor advance-decline ratio on Jan 13. Risks of sharp and sudden selloffs at high levels remain. One needs to be careful and keep long positions under control and keep taking profits on trading and some investment positions. 14382-14432 is the crucial support band for the Nifty in the near term.”

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities –

“The Benchmark indices witnessed volatile trading session near 14650 / 49700 resistance level.  We are of the view that the bulls are still in total control but daily chart showing temporary pause near 14650/49700 hence, traders may prefer to take caution stance near resistance level. Technically, the index still maintains higher high and higher low series .however,  on daily chart the nifty/ Sensex has formed Hammer candlestick reversal formation which suggests high chances of quick intraday correction is not ruled out if it trades below 14435/49100.  Below 14435/49100 correction likely to continue up to 14400-14300. /49000-48650 on the other side, 14650/49700 would be the immediate hurdle for the bulls, above the same the index could rally till 14700-14735/49850-50000.”

Vinod Nair, Head of Research at Geojit Financial Services

“Following positive global cues and ease in inflation for the month of December, the market opened with good gains. However, profit-booking was triggered due to 1.9% contraction in factory output, premium valuations and concern over upcoming union budget, knocking down all the gains.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“Index opened a day with gap up but after making a high index witnessed profit booking and closed a day with mild loss at14556 forming a hanging man sort of candle pattern on the daily chart. The index has formed a good base near 14500-14430 zone any break below said levels can emerge in more profit booking so longs can use said levels as there trail stop loss level; strong hurdle zone is formed near 14650-14700 zone where one can start booking profits.”

Manish Shah, Founder, Niftytriggers

“Nifty remains bullish and if we see Nifty moving above 14580-14590 then we should be expecting a rally towards 14650 and above that to 14750. Support for Nifty is at 14380-14360. Any declines to 14380-14360 is a buying opportunity. Avoid selling in Nifty as the general thought process that Nifty is overbought. In s strong trend prices can remain elevated for a long time. Undercurrent remains strong. Nifty hitting 15000 before Jan expiry is a distinct possibility.”

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