After The Bell: A choppy day, here is what investors should do on Friday

It was a choppy day on D-Street on August 13 but the Nifty50, which ended in the red for the second day, managed to hold on to 11,300 on a closing basis.

The S&P BSE Sensex fell 59 points to 38,310 as the Nifty50 ended eight points down at 11,300.

Sectorally, selling pressure was seen in telecom, healthcare, banks, and energy stocks, while some action was seen in capital goods, industrials, consumer durables and metals stocks.

Experts say a similar script played out on Wednesday and Thursday—the Nifty gets off to a strong start but loses momentum above 11,350 levels. Investors will be better off reducing long positions as the index is in a no-trade zone.

The Nifty50 continued to be listless as the intraday range remained 90 points. "Albeit technical picture on oscillator front continues to remain mixed fresh sell signals on lower time frame charts are being witnessed,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Weakness will be confirmed on a close below 11,242 levels. Strength shall resume on a strong close, with a wide intraday trading range above 11322 levels. On such strength, a higher target towards 11450 can be expected, whereas break down below 11,242, can set the tone for a swift downswing with an eventual target placed around 10882 levels,” he said.

Traders should wait for a breakout in either direction before initiating a trade.

Also Read: Gainers & Losers: 10 stocks that moved the most on August 13

We have collated views of experts on what investors should do on August 14 when the market resumes trading:

Sumeet Bagadia, Executive Director, Choice Broking

Amid lack of clear direction, the Nifty fell more than 70 points after Prime Minister Narendra Modi delivered his speech on transparent taxation to make an intra-day low.

Mostly largecap shares were trading under pressure except for defense-related stocks that performed very well and may further give upside movement in an upcoming trading session. At current levels, the downside support comes at 11200 while upside resistance comes at 11450.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty index has become rangebound—between 11,250 and 11,350. It is a very narrow range and hence difficult to trade. I would advise a trade only if either side of the range is triggered.

Ajit Mishra, VP - Research, Religare Broking Ltd    

Markets have been hovering in a narrow range for the last four sessions and indications are in the favour of a further surge.

However, a lot will depend upon the outcome of the Supreme Court hearing on the AGR case on August 14. We thus advise continuing with hedged trades, with the bias on the positive side.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

A display of lack of strength of recent upmove and the positive sequential movement like higher tops and bottoms signal a possibility of minor downward correction from the highs (as per higher top formation at 11373).

But, the Nifty is not showing any intention to weaken from the highs. Hence, there is one more possibility of new swing high formation in the short term (just above the recent high of 11,373) before a crucial profit-booking from the highs.

Important resistance is placed at 11,400-11,500 level as per the weekly timeframe chart (as per change in polarity principle) and the Nifty not showing any significant downward correction from near this hurdle could be a positive sign for the bulls for an upside breakout of the hurdle.

Hence, further movement in the market will signal any upside breakout. The short-term trend for the Nifty continues to be range-bound. The market is likely to move within 11,375-11,225 levels in the next session.

Any failed upmove above 11,375 could lead to profit-booking. Sector and stock-specific movement could continue in the short term. Immediate support is placed at 11,250.