Despite muted global cues, benchmark indices ended Monday’s session broadly in the green. The NSE Nifty 50 rose 111 points or 0.61% to 18,314.40 and BSE Sensex zoomed 234 points or 0.38% to 61,963.68. In sectoral indices, Bank Nifty fell 84.30 points or 0.19% to 43,885.10 and Nifty IT surged 703.65 points or 2.49% to 29,007.30. The top gainers on Nifty 50 were Adani Enterprises, Adani Ports, Divis Lab, Apollo Hospital and Tech Mahindra while the losers were Hero Motocorp, Axis Bank, Nestle India, Eicher Motors and Bharti Airtel.
“The domestic market inched higher in anticipation of possible progress in US debt ceiling negotiations. Despite a weak fourth-quarter performance, IT stocks rebounded on account of bargain opportunities and pent-up demand. Investors remain watchful ahead of the release of US FOMC minutes on Wednesday, as the minutes may give some indication of a pause on rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
NSE Nifty 50 support placed at 18210–18250; resistance at 18350–18375
“On the upside, the zone of 18350–18375 where crucial Fibonacci retracement levels are placed can act as immediate hurdles from a short-term perspective. The daily momentum indicator has a negative crossover which is a sell signal and suggests that there could be consolidation going ahead as without the support of the momentum indicator it would be difficult for prices to sustain at higher levels. On the downside, the key hourly moving averages placed in the range 18210–18250 shall act as a cushion and provide support in case of a slide. Overall, we still believe that the Nifty is in a consolidation mode and the range of consolidation is likely to be 18000–18400,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty support at 43500-43650; resistance placed at 44150
“On Monday, Indian stocks gained, with the IT sector leading the way. For the day, the Bank Nifty and the financial sector underperformed. Bank Nifty has support at 43500-43650 while resistance is placed at 44150 which is also close to all-time high levels,” said Deven Mehata, Equity Research Analyst at Choice Broking.