Technical analysts believe Nifty 50 is likely to face resistance in the 17,600-17,660 range now.
Benchmark indices Sensex and Nifty 50 witnessed a tug-of-war between bulls and bears on Wednesday before closing with marginal losses. On the closing bell, BSE Sensex settled at 58,927, down 78 points or 0.13% while the NSE Nifty 50 closed at 17,546, slipping 15 points or 0.09%. Bank Nifty slipped 0.78% giving up 37,000 mark. Zee Entertainment was among the top gainers, skyrocketing 32%. Among Sensex constituents, Tech Mahindra gained 3.7% as the top gainer while HDFC ended as the worst performer, falling 1.46%. Technical analysts believe Nifty 50 is likely to face resistance in the 17,600-17,660 range now, a break above which could propel indices to fresh highs.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –
“After a robust pullback rally, benchmark Nifty witnessed a narrow range activity near the 17600 resistance level. On Wednesday, post muted opening the Nifty hovered in the range of 17525-17610 levels. It made a couple of attempts to clear the resistance of 17600 but failed to clear the hurdle due to tepid global cues and lack of follow-through buying activity. The intraday trading set up suggests 17600-17625 levels would act as a key resistance level for the day traders and below the same a quick intraday correction till 17500-17450 is not ruled out. On the flip side, 17625 could be the range breakout level for the day traders and above the same the breakout continuation formation is likely to continue up to 17665-17700-17725 levels.”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –
“The index failed to get past 17600 on a closing basis. Until we do not get past 17600 or break 17300, we will not see a move backed by volume and momentum. The trend is biased on the upside and hence dips or intraday corrections can be utilized to enter long positions.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index showed a very narrow range for a day and closed a day at 17547 with minimal loss forming a small bearish candle on the daily chart. the index has same support zone around 17500-17430 zone any dip near said levels will be again buying opportunity with keeping immediate stop out level below 17450 zone and resistance is coming near 17600-17660 zone also one can lock their trading long gains around said levels, the overall range is still in between 17300-17800 zone & either side breakout will decide the final direction.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Despite hopeful signs in the global markets, domestic main indices traded in a narrow range to give away its early gains in today’s volatile session. However, the broad market was robust barring banks, all major sectors were in demand and media, metals and realty outperformed. Realty stocks were in focus owing to an increase in property registrations in September while easing jitters over the Chinese economy bolstered metal stocks. Investors traded cautiously awaiting the outcome of the FOMC meeting that will clear the air regarding Fed’s tapering plans.”
S Hariharan, Head- Sales Trading, Emkay Global Financial Services –
“Macro factors have dominated flows this week, with ongoing newsflow about a large potential bankruptcy in China causing worries of contagion. Further, global markets are also awaiting comments from US FOMC with regard to plans for tapering monthly bond purchases. Dollar index is also poised for a potential technical breakout to multi-month highs, which might have adverse impact on flows to risk assets. As a result, Nifty has traded largely range-bound after a breakout to new highs in the first fortnight of Sep. Domestic retail sentiment remains relatively subdued on account of these macro headlines. Banknifty & Auto indices remain the major laggards, while IT & FMCG sectors further built on relative strength in the last week.”
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