The trend continues to be negative as the benchmark index Nifty remained below 17400. However, the Nifty has formed a bullish harami pattern on the daily chart, which suggests a possibility of a near-term recovery.
On the higher end, Nifty may move towards 17400-17450 where once again it may find resistance. On the lower end support exists 16800.
With support from recovery in beaten-down HDFC stocks and the IT sector, the market countered yesterday’s selloff. Foreign investors are pumping out funds in while support from is helping the market to partially balance the pressure. A similar level of volatility can be expected to continue until global uncertainties leading to a softening of FII selling.
A Pull-back rally in the global markets lifted sentiments as benchmark indices traded higher. Nifty reclaimed its 17000 level. Among sectors, the Nifty Auto index outperformed rallied by over two percent. Whereas technical sell-off was seen in Metal and Media stocks.
Technically, after today's bounce back, the Nifty is still trading below its 200-day SMA which is broadly negative. On daily charts, Nifty has formed a small inside body bullish candle and on intraday charts. Nifty is consistently taking support near 17050. Direction wise, the medium-term trend is still on the downside. But the continuation of the pullback rally is not ruled out if the Nifty succeeds to trade above 17050.
For traders, 17050 would act as a trend decider level, above which Nifty could rally up to 17250-17350. However, below 17050 uptrend would be vulnerable. Below the same, chances of hitting the level of 16950-16900 would turn bright
Tuesday’s last hour mayhem was followed by a modest gap up opening today on the back of spectacular overnight rally in US bourses. Around the mid-session, Nifty even went on to reclaim the 17200 mark. However, as we once again entered the last couple of hours of the session, market started to become a bit tentative. Fortunately it was no way closer to Tuesday’s weakness as Nifty maintained its position well inside the positive terrain to close with a percent gains.
The benchmark index Nifty showed tremendous resilience today; but banking kept sulking throughout the session. Hence, the Nifty couldn’t stay beyond the sturdy wall of 17200.
Fortunately, we are back above 17000 convincingly and hence, any positivity from the global peers or our banking space, would bring back the strength in our market. As far as levels are concerned, 17200 – 17300 remains to be a stiff hurdle and only a sustainable move beyond this would result in a strong momentum in heavyweights.
On the flipside, 17000 remains to be a sacrosanct support. Considering the overall tentativeness, we advise traders not to trade aggressively and should continue with a stock specific approach.
Markets witnessed a decent recovery and gained over a percent, tracking firm global cues. The benchmark started with an upside gap and traded in a narrow range thereafter.
Eventually, the Nifty index settled at 17,136.55; up by 1.05%. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein auto, oil & gas and healthcare posted decent gains.
Markets are largely following their global counterparts, which are currently offering mixed cues. Besides, indications from the domestic front are also not very encouraging.
On the index front, 16,800 would continue to act as crucial support in Nifty while the 17,250-17,350 zone would be tough to cross. Keeping in mind the scenario, participants shouldn’t read much into the single-day rebound and stay
You must be logged in to post a comment.