A close below 11550 could drag the index lower towards 11500-11520 levels, while a break below 11500 levels could trigger further profit taking.
The tug of war between the bulls as well as bears continued. However, bulls failed to maintain their lead as bears took lead in pushing the index lower towards crucial support levels in the second half of the session on Wednesday.
The index witnessed selling pressure in the second half of the session after starting on a positive note largely on account of weak global cues. Investors also remained cautious ahead of central elections and US-Europe trade tensions, suggest experts.
The final tally on D-Street – the S&P BSE Sensex 353 points lower at 38,585 while the Nifty50 dropped 87 points to close at 11584.
The broader market indices outperformed with BSE Midcap ending lower by 0.3%, while BSE-Smallcap closed on a flat note.
The sectoral indices exhibited mixed trend where Healthcare, Auto and Reality ended in the green, while Banks, Metals and Telecom remained the top losers and closed in red.
Experts are of the view that volatility is likely to remain high in the near term. Further, the trend of the market is likely to be dictated by domestic events like Q4FY19 earnings season and domestic macro data (IIP & CPI).
Rising for the second straight session, the rupee advanced 19 paise Wednesday to close at 69.11 against the US dollar on strong foreign fund inflows amid the greenback's weakness against key rivals overseas.
On the institutional front, FPIs were net buyers in Indian markets for Rs 1429 crore while DIIs were net buyers to the tune of Rs 461 cr, provisional data showed.
Technical View:
Nifty formed a bearish candle on the daily charts
Nifty has been consolidating in between 11550 to 11750 zones from last nine trading sessions.
A close below 11550 could drag the index lower towards 11500-11520 levels
While a break below 11500 levels could trigger further profit taking
If it fails to hold 11550 zones then a short term profit booking decline could be seen towards immediate support of 11520-11500 zones while hurdles are placed at 11666 and 11680 zones.
Three levels: 11550, 11571, 11680
Max Call OI: 12000, 11800
Max Put OI: 11000, 11500
Technical Recommendations:
We spoke to YES Securities and here’s what they have to recommend:
SBI Life Insurance Company Ltd: Buy| LTP: 619| Target: Rs 690| Stop Loss: Rs 590| Upside 11%
Hindustan Unilever Ltd: Buy| LTP: Rs 1678| Target: Rs 1820| Stop Loss: Rs 1620| Upside 8%
Jet Airways : Buy| LTP: Rs 267| Target: Rs 315| Stop Loss: Rs 238| Upside 18%
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