Domestic equity markets closed flat on Wednesday, down after reaching fresh all-time highs. S&P BSE Sensex scaled a new all-time high of 56,198 but failed to sustain those levels and closed with marginal losses at 55,944. NSE Nifty 50 touched a new high of 16,712 but ended with only marginal gains, up 0.06% at 16,634. Among the top gainers on Sensex TCS, gaining 1.42%, followed by Infosys, Reliance Industries, and HUL. On the other hand, Bajaj Finserv was down 2.29% as the top Sensex laggard, followed by Titan, Maruti Suzuki, and Bharti Airtel. Bank Nifty failed to hold intra-day highs of 35,910 and closed 0.35% lower at 35,586. Broader markets, except Nifty Midcap 50, closed with gains.
Nifty hit a fresh record high but failed to close above the 16700 mark due to profit booking at higher levels. Technically, post the strong pullback rally, the index has formed a double top kind of reversal formation near the 16700 resistance level, which is broadly negative for the market. However, the larger texture of the market is still bullish, but for day traders the 16700 levels would act as a major hurdle. Above the same, the uptrend could continue up to 16750-16790 levels. On the flip side, a strong possibility of quick intraday correction up to 16580-16550 levels is not ruled out if the Nifty succeeds to trade below 16620.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The markets have once again closed above the 16600 level which is a good sign. We should be able to scale higher to 16800-16850. That would be the next target for the Nifty. It is not advisable to buy at current levels simply because the index has witnessed a one way rally. Hence a “buy on dips” approach would be the best way to address this market. Intraday corrections can be utilized to accumulate long positions.”
Mohit Nigam, Head – PMS, Hem Securities –
“Some buying interest is seen in selected Oil & Gas, Metals, IT and FMCG stocks while some pressure is seen in Pharma, Realty and Auto stocks. Shares of sugar companies climbed after Cabinet hikes FRP for sugarcane. Finance Minister Nirmala Sitharaman urged banks to come up with specific plans for better credit expansion in northeastern states. Delhivery Pvt, an Indian logistics and supply chain start up plans to file a draft prospectus as soon as October for its initial public offering that could raise $1 billion. On the technical front, 16,300 and 16,750 are immediate support and resistance in Nifty 50.”
Palak Kothari, Research Associate, Choice Broking –
“Technically, the Index has faced resistance from the previous level of 16700 and made a Shooting Star kind of candle, which suggests correction can come in upcoming days. Moreover, the Index has given closing below 9HMA, which suggests some downside movement can come in the upcoming session. Furthermore, Momentum Indicator Stochastic is also showing negative crossover in the hourly chart which suggests some weakness for the next trading session. At present, the nifty index has immediate resistance at 16720 levels while downside support shifted up to 16400 levels.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Market opened positively but main indices closed on a flattish note due to muted performance by large caps. The broad market was more positive, as Midcaps bounced after the correction mode during the month, which lifted the morale of investors. The global market traded positive on Covid vaccine approval and in anticipation of a dovish comment by the Fed chair in the upcoming meeting (Jackson Hole).”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index took hurdle from its previous swing high & saw profit booking resulting index closed a day at 16635 on a flattish note. For further northward move, index needs to sustain above 16700 zone or else we may see more profit booking towards immediate support zone of 16600-16500 also dips will be suggested around said levels with keeping strict stop out level below 16500 zone, above 16700 we may see a quick move towards next hurdle zone of 16800”
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