Sensex snaps 2-day gaining streak; Nifty may fall to 17200, if it gives up 17550

Chartists say that the Nifty index below 17,550 will take it to 17,200 levels. (Image: REUTERS)

BSE Sensex and Nifty 50 snapped a two-day gaining streak on Wednesday, on the back of profit-booking in index heavyweights such as Reliance Industries Ltd (RIL), Infosys, ICICI Bank, Kotak Mahindra Bank, HCL Technologies, among others. BSE Sensex tumbled 774 points from the day’s high to end at 59,190. While NSE’s Nifty 50 index settled at 17,646, falling 239 points from day’s high. In the broader market, BSE Midcap index plunged 1.22 per cent, finishing at 25,374. S&P BSE SmallCap index fell 158 points or 0.55 per cent to end at 28,693. Sectorally, Bank Nifty index fell over half a per cent to end at 37,522. India VIX, volatility index, jumped 5.70 per cent to finish at 17.33 levels. Chartists say that the Nifty index below 17,550 will take it to 17,200 levels.

Rohit Singre, Senior Technical Analyst, LKP Securities

Nifty formed a bearish candle after forming two consecutive bullish candle previously. The index has decisively breached majority support zone now going ahead immediate support zone is coming near 17600-17500 zone if managed to sustain above-said levels one can expect a swift pullback and now good resistance is formed near 17700-17770 zone where again we may see some sort of profit taking.

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

Nifty 50 index was unable to sustain at higher levels and nosedived thereafter. Strong support for Nifty lies between 17400 and 17500. This level was respected the last time too. If we are unable to repeat this, we could plummet further to 17200. On the upside, unless we do not get past 17950, the uptrend will not resume and if we conquer it, 18200 can be the next achievable target.

Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities

Nifty50 continues to remain in a medium-term uptrend – we expect 18500 to be conquered going ahead. For the short term well, data parameters suggest positive bias to hold. Immediate support for the index is seen at 17640 while 18000/18200 is expected on the higher side; buying on dips is advisable. Metals are showing early signs of reversal while the NBFC space is expected to remain in action; midcap also remains in momentum with outperformance expected to continue.

Vinod Nair, Head of Research, Geojit Financial Services

Weak global markets which resulted in profit booking in metals and IT stocks led domestic indices to trade in red, trimming its early gains. Spike in crude prices is spooking the Indian market while inflation is affecting US bond yields. RBI commenced its three-day MPC meeting in which the central bank is expected to keep rates unchanged, however, it is likely to announce measures to gradually pump out liquidity from the economy.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed a correction and an attempt to hold the level above the Nifty 50 index level of 17600. Market is going to be crucial for the short-term market scenario to sustain above the 17450-17550 Nifty50 index support zone. If the market is unable to sustain the level of 17450-17550, and market can witness further corrections till the levels of 17250-17300.

Rahul Sharma, Co-Founder, Equity99

Nifty witnessed a sharp decline in the second half of the session. On hourly charts, we can see a reversal which crossed 89WMA & 50DEMA but has taken support by its 100 DEMA. Support further is placed at 17595 followed by 17490 and 17375. Similarly on the upside 17750 will act as immediate hurdle, cross-over will again test 17850-17900 levels. Bank Nifty which was much stable than the main index but showed a similar signal, the second half of the session was filled with supply. Now going forward, support for Bank Nifty is placed at 37300 -37100-36900 and resistance is placed at 37800 – 38100 levels.