Benchmark indices NSE Nifty and BSE Sensex pared early gains and ended Tuesday’s session flat. The NSE Nifty 50 closed at 18,265.95 and the 30-share BSE Sensex settled at 61,761.33. In sectoral indices, Bank Nifty fell 85.85 points or 0.2% to 43,198.15, Nifty PSU Bank tanked 113.3 points or 2.75% to 4,001.8 while Nifty IT jumped 204.55 points or 0.73% to 28,125.5. The top gainers on Nifty 50 were Divis Lab, IndusInd Bank, Coal India, TCS and Axis Bank while the losers were UPL, ITC, SBIN, Bajaj Finance and JSW Steel.
“The domestic market relinquished its gains as weak global sentiments took hold. The upcoming US inflation figures have become the focal point in determining the global market trend. The US inflation rate, which is expected to remain unchanged at its March level of 5%, is causing worries that the Fed will remain stricter for long. However, the sustained support from FIIs is guarding the domestic market from a steep correction,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty can witness correction in range of 18000–18350
“Nifty is unable to sustain at higher levels around the upper boundary placed at 17350. The hourly momentum indicator has triggered a negative crossover which is a sell signal. Considering that the Index is finding resistance around 17350 and the momentum indicator is also not supportive can lead to a consolidation in the short term. On the way down the Nifty can slip down till 18170–18150 where the key hourly moving average is placed. Overall, the Nifty can witness correction in the range 18000–18350 from a short-term perspective. In terms of levels, 18170 – 18150 shall act as a crucial support zone while 18330 – 18350 shall act as an immediate hurdle zone for the Nifty,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty support at 43200, 43100, 43000; Resistance at 43400, 43500, 44000
“Bank Nifty is seen to be trading in a higher high higher low formation on the daily timeframe but is facing rejection from 43500 levels. The undertone remains bullish as long as it holds 43000 as put writers are fiercely active on 43100 and 43000 and call writers are active on 43300 and 43500. Buy on dip strategy can be implemented for targets of 43700. Technical indicator RSI is at around 62 as is showing strength by sustaining above 50 levels. Bank Nifty support at 43200, 43100 and 43000 and resistance at 43400, 43500 and 44000,” said Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd.
