Domestic indices ended Monday’s trading session in the green. The NSE Nifty 50 gained 6.25 points or 0.03% to 19,434.55 and BSE Sensex rose 79.27 points or 0.12% to 65,401.92. Among the broader indices, the Nifty 100 fell 0.15%, Nifty Next 50 sank 1.25% and the Nifty 200 plunged 0.15%, while Nifty Midcap 50 gained 0.05%. In sectoral indices, Bank Nifty tumbled 108.15 points or 0.24% to 44,090.95, Nifty Auto fell 0.33%, Nifty Metal sank 2.14%, Nifty Pharma fell 0.33%, Nifty PSU Bank plunged 0.71%, Nifty Private Bank fell 0.05% and the Nifty Realty tanked 0.66% while Nifty IT climbed 0.68%, Nifty FMCG gained 0.49% and Nifty Media surged 0.87%. The top gainers on Nifty 50 were Divi’s Labs, Infosys, LTIMindtree, Hindustan Unilever and RIL while the top losers were Adani Enterprises, JSW Steel, Hindalco Industries, State Bank of India and Adani Ports & Special Economic Zone.
“Following weak performances in Asian markets, the domestic indices commenced the day with a negative bias, prompted by discouraging domestic industrial data along with concerns over demand from China. However, the indices managed to recover from their initial losses, ending the day on a relatively neutral note. India’s wholesale inflation persisted in negative territory, albeit moderating to 1.36%, as the decline in fuel prices was counterbalanced by higher food costs. India’s CPI inflation, due to be released today, is anticipated to exceed the RBI’s tolerance level of 6% due to mounting pressure from elevated food prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty 50 support at 19300–19250; resistance at 19450–19500
“The Nifty witnessed a volatile day of trade today. It opened on a negative note and witnessed selling pressure. However, as the day progressed it saw buying interest from lower levels and closed marginally in the negative down 15 points and well off the intraday lows. More importantly, it has managed to close above the 40-day moving average (19,355), indicating that it is a crucial support to watch out for in the near term. Only a decisive close below it shall lead to a further decline. On the upside, the zone of 19,450 – 19,500 is a crucial hurdle where resistance in the form of the key hourly moving averages is placed which shall restrict the upside. The daily and hourly momentum indicators are providing divergent signals. Thus, under such a situation a consolidation is highly likely. Overall, there a no signs of a trend reversal, and hence the short-term outlook is negative. On the downside we expect the Nifty to target levels of 19,100. The crucial support zone on the downside is placed at 19,300 – 19,250 and on the upside, resistance is placed at 19,450 – 19,500,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty short-term target at 43,500
“Bank Nifty has formed a doji pattern on the daily charts. this pattern after a sharp fall indicates that Bank Nifty can consolidate from a short-term perspective. After falling for three consecutive weeks, it has reached the 20-week moving average (43,880) which can restrict a sharp decline from hereon. The daily and hourly momentum indicators are providing divergent signals. Thus, under such a situation a consolidation is highly likely. However, the overall trend is still negative, and we expect levels of 43,500 from a short-term perspective,” Jatin Gedia added.