Sensex, Nifty end flat with positive bias, extend up-move to fifth day; consolidation likely ahead

Domestic benchmark indices managed to extend their up-move, narrowly, to the fifth consecutive trading session. Headline indices Sensex and Nifty closed with marginal gains after a volatile trading session on Tuesday. S&P BSE Sensex added 20.86 points or 0.04% to settle at 58,136 while NSE Nifty 50 index ended at 17,345 points gaining 5.4 points. IndusInd Bank was the top gainer on Sensex, up 2%, followed by Asian Paints, and NTPC. Tech Mahindra was the worst performer, ending 1.85% lower accompanied by HDFC, L&T and HDFC Bank. Bank Nifty outperformed and closed above 38,000 mark while India VIX ended 5.95% higher at 18.53 levels. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

Rupak De, Senior Technical Analyst at LKP Securities –

“Nifty remained rangebound during the day as the index remained within the bands of 17200 and 17400. On the daily chart, the index has maintained its uptrend. The daily RSI is in bullish crossover and rising. The trend is likely to remain bullish as long as the Nifty holds above 17000. On the higher end resistance is visible at 17400-17500.”

Palak Kothari Senior Technical Analyst Choice Broking –

“On the technical front, Nifty has formed a doji kind of candle on a daily chart which indicates indecision between buyer & seller. Nifty has faced resistance from horizontal line i. e17410 levels crossing above is very important for further rally. The momentum indicators MACD & Stochastic were trading with a positive crossover on a daily time frame which suggest strength in the counter. The support for nifty has shifted around 17150 levels while on the upside 17450 may act as an immediate hurdle. On the other hand, Bank nifty has support at 37800 levels while resistance at 38700 levels. Overall, the bullish momentum is intact as nifty holds 17000 levels, crossing above 17500 can show more upside rally in the counter.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Global indicators did not favour bulls, with most Asian and Western markets trading over concerns of rising geopolitical tension between the US and China. Additionally, economic data point to a decrease in demand, major markets throughout the world are trading with recessionary fears. The domestic market, however, has proven resilient thanks to increased demand in heavyweights and a strengthening Indian rupee underpinned by falling US treasury yields & FIIs buying.”

Ajit Mishra, VP – Research, Religare Broking –

“We may see further consolidation in the index, to digest the recent gains. Meanwhile, choppiness would remain high due to the upcoming RBI policy meet outcome and prevailing earnings season. On the index front, a decisive close above 17,400 would help the index inch towards 17,800 levels. In case of any profit-taking, the 16,800-17,000 zone would act as a cushion. Participants should continue with the “buy on dips” approach.”