Sensex ends in red, Nifty remains positive above 17250; here’s what experts make of today’s trade

Nifty index is in a bullish trend and continuously hovering above 17250 marks, which acts as immediate support for the index

Recovering from the day’s lows, BSE Sensex and Nifty 50 closed near flatline on the first day of the week. BSE Sensex fell 127 points or 0.22 per cent down at 58,177, while the Nifty 50 index ended 14 points lower at 17,355. Index heavyweights such as Reliance Industries Ltd (RIL), ICICI Bank, HDFC Bank, Hindustan Unilever Ltd (HUL), Axis Bank contributed the most to the indices’ fall today. Broader markets outperformed equity benchmarks. BSE MidCap index was up 0.32 per cent or 78 points to settle at 24,783, while BSE Smallcap index was up 0.80 per cent or 221 points to finish at 27,866. India VIX, the volatility index, was up 0.59 per cent at 14.03 levels.

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Rohit Singre, Senior Technical Analyst, LKP Securities

Index showed some sell-off in the beginning but smart recovery has been seen from good support zone and managed to closed a day at 17351 with minimal loss & formed a Doji candle pattern on daily chart hinting indecision in the market. Good support zone for the index is coming near 17300-17250 zone if managed to hold above-said levels we may see next move towards 17430-17500 zone, fresh buying only can see above 17500 zone.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

Markets witnessed profit-taking in select frontline stocks as weakness in other Asian markets weighed on Indian gauges. Benchmark Nifty moved in a range of 100 points and took support near 17270 after falling sharply in early trades. Over the last four days, the index has been hovering between 17250 to 17435 levels. At the same time, the Nifty is consistently taking support at 17250. As long as the index is trading above 17250, the bullish formation is likely to continue up to 17450 -17500 levels. However, trading below the same could possibly trigger correction up to 17200-17150 levels.

Sachin Gupta, AVP – Research, Choice Broking

Technically, the Nifty index is in a bullish trend and continuously hovering above 17250 marks, which acts as immediate support for the index. On the daily charts, the index has been consolidating between the ranges of 17400-17250 levels; any breakout above 17400 will accelerate the rally towards the new milestone. All the important key indicators are supporting the upward rally in the index. At present, the Nifty has resistance around 17450 levels while on the downside, 17250 may act as support for the index.

S Ranganathan, Head of Research, LKP Securities

Indices remained rangebound in trade today after a stellar run in Index stocks during the past few weeks making India one of the best-performing markets globally last month. Action however was seen in select Small & Midcap names as consolidation in several sectors have benefited select companies who have used the Pandemic to gain share. Market Participants were however picking their spaces as valuations are pricey with several stocks trading at 3.5x price to book.

Rahul Sharma, Co-Founder Equity99

Nifty has been constantly consolidating in a range, 17250 is immediate support to Nifty followed by 17210-17175, Hurdle on the upside is placed at 17370 & cross over can take nifty to 17435-17475 levels. Bank Nifty which is underperforming the market is also traveling in a range, strong support is placed at 36150 followed by 36000-35900 levels & similarly on upside hurdle for bank nifty is placed at 36700 and crossover will take to next resistance level which is placed at 37000 levels for Bank Nifty. Markets are still expected to consolidate. We are still bullish on Mid & Small caps as this week many companies have come out of the Trade-to-Trade category and we expect them to be out of the ASM list with the next 3 weeks.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)