Sensex tops 60200 on weekly F&O expiry, Nifty support at 17850, ‘remain cautious while adding long positions’

BSE Sensex managed to close above 60,000-mark for the second consecutive day on Thursday. While Nifty 50 index settled above 17950 on the day of weekly F&O expiry day. S&P BSE Sensex ended 38 points or 0.06 per cent at 60,298, while NSE Nifty rose 12.25 points or 0.07 per cent to settle at 17,956. Stocks of index heavyweights such as Kotak Mahindra Bank, Larsen & Toubro (L&T), Bharti Airtel, ITC, and State Bank of India, among others contributed the most to the indices’ gain today. Broader markets outperformed the equity frontliners. S&P BSE MidCap index rose 0.42 per cent or 104.51 points to settle at 25,286.51. While S&P BSE SmallCap index settled 0.34 per cent or 96 points up at 28,438.57.

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The benchmark indices witnessed a volatile trading session, after a roller coaster activity, the nifty ends at 21 points higher while the Sensex was up by 66 points. Among Sectors, Reality and Metal indices outperformed whereas IT index registered some profit booking at higher levels. Technically, on the short term time frame, the index consistently forming higher high and higher low formation which is broadly positive. But at current levels, investors need to be cautious while adding long positions. For the traders now, 17850/60000 would be the key support level, above which, it could hit the level of 18000-18070/60500-60700. On the flip side, traders may prefer to exit out from trading long positions if the index succeed to trade below 17850/60000. Below which, the it could slip till 17750-17700/59700-59500.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty made a double top compared to the previous session but ended marginally higher. Large volumes and range move mean that a lot of churning seems to be happening between sectors and stocks. With no reversal signs on the horizon, Nifty could rise towards 18115 over the next few sessions. On the other hand, a breach of 17833 could mean faster downsides.

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Vinod Nair, Head of Research, Geojit Financial Services

Following the release of the Fed minutes, domestic equities experienced profit booking amid weak sentiment from global peers. The minutes showed that even while decision-makers were concerned about the impact of aggressive actions, they were in favour of raising rates further. In the domestic market, IT and pharma were the major laggards, responding to the fall in the US stocks, while financials maintained their support.

Palak Kothari, Senior Technical Analyst, Choice Broking

On the technical front, the Nifty has formed a bullish candle on a daily time frame and tested the previous day’s high which suggests strength in the counter. Nifty has been trading above 21*50-DMA as well as above the Ichimoku cloud which adds strength to the upside. However, nifty is facing resistance from the phycological level i.e., 18000 marks closing above the same can show further upside rally. On the OI Data, On the call side, the highest was witnessed at 18200 followed by 18100 while on the put side was at 17800 level. The momentum indicators MACD was trading with a positive crossover on a daily time frame which suggests strength in the counter. The support for nifty has shifted around 17800 levels while on the upside 18100 may act as an immediate hurdle. On the other hand, Bank nifty has support at 39000 levels while resistance at 40000 levels. Overall, the index is looking strong crossing above 18000 marks will add more strength to the counter and head towards 18200 levels.