Sensex snaps 6-day gaining streak, Nifty ends F&O expiry at 17382, must cross 17500 to entice bulls

Domestic benchmark indices snapped their 6-day gaining streak on Thursday as headline indices ended flat with a negative bias after a volatile trading session. S&P BSE Sensex closed 51.73 points or 0.09% lower at 58,298 while the NSE nifty 50 index slipped 6.15 points or 0.04% to settle at 17,382. Sun Pharma jumped 2.46% to end as the top gainer on Sensex while Nestle India was up 2.39%, followed by Infosys, Dr Reddy’s and M&M. NTPC was the worst performer, accompanied by State Bank of India, Axis Bank, and Reliance Industries. Bank Nifty ended 0.62% in red at 37,755 while India VIX jumped more than 4% to end above 19 levels.

Deepak Jasani, Head of Retail Research, HDFC Securities-

Rupak De, Senior Technical Analyst at LKP Securities-

“Nifty remained highly volatile before closing flat for the day. On the higher end, it found resistance around 17500 and slipped lower. The momentum indicator RSI is in bullish crossover. The trend is likely to remain sideways to negative as long as it remains below 17500. On the lower end, support exists around 17100-17000.”

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Mohit Nigam, Head – PMS, Hem Securities –

“On technical front, key resistance for nifty is at 17550 and support at 17200. The Bank Nifty index witnessed high volatility a day before the RBI Policy with movements on both sides. The RBI has raised rates twice since May and is expected to hike rates again to tame persistently high inflation in Asia’s third-largest economy. Moreover, bulls and the bears are trying to fight from both ends with support at 37,200 and resistance at 38,200 levels.”

Palak Kothari, Senior Technical Analyst, Choice Broking –

“On the technical front, Nifty has taken support from the horizontal line as well as 200 DMA on a daily chart which suggests buyers are active. Nifty has faced resistance from physiological levels of 17500 crossing above is very important for further rally. Nifty has given closing above 61.8% Fibonacci retracement of its previous down move from 18630 to 15160 levels i.e., 17308 which indicates strength for upside. The support for nifty has shifted around 17150 levels while on the upside 17500 may act as an immediate hurdle. On the other hand, Bank nifty has support at 37000 levels while resistance at 38200 levels. Overall, the bullish momentum is intact as nifty holds 17150 levels, crossing above 17500 can show more strength in the counter.”

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Vinod Nair, Head of Research at Geojit Financial Services–“Taking positive momentum from the robust US economic data, the domestic market opened with gains, while worries over the US-China conflict kept investors on the defensive, leading to heavy volatility. Weak PMI and trade deficit data witnessed downside pressure on the Indian rupee & equity market. However, sustained foreign interest in Indian equities is led to buying on dips, resulting in a late recovery.”