Benchmark indices S&P BSE Sensex and NSE Nifty 50 traded range-bound in the negative territory for better part of the session on Friday. However, the indices turned choppy and ended mildly off lows as energy prices, including crude oil futures, eased after the US and EU signed agreement to share energy needs. Sensex ended at 57,362, down 233.5 points or 0.4 per cent, while Nifty 50 ended at 17,153, down 70 points or 0.4 per cent. The broader markets, too, closed in the negative zone. According to analysts, the Nifty is having strong support at 17000, while on the upside 17300-17400 may act as a hurdle for the index, crossing above the same can show upside movement. Investors must focus on sectors/stocks which are performing well while concentrating more on overnight risk management, they said.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
“With Nifty near the 50-day SMA or 17400 level, the market is consistently facing selling pressure which is broadly negative. Further, on weekly charts, the Nifty has formed a small bearish candle that also indicates further weakness. We are of the view that as long as the index is trading below 17325, the correction wave is likely to continue in the near future and below the same the chances of hitting a 200 day SMA or 17000 would turn bright. On extended weakness, the index may fall up to 16900-16870 levels. On the other hand, fresh uptrend is possible only after the level of 17325. Above the same, one quick pullback rally till 17400-17450 is not ruled out.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty remained sideward before ending the session with a marginal loss. The benchmark index found support at the rising trendline on the daily chart for the second consecutive session. Going ahead, the choppiness is likely to continue as long as the Nifty remains below 17330. On the lower end, support is visible at 17000, below which the current trend may change to a negative one. However, a decisive move above 17330 may induce a directional trend in the market.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“A small negative candle was formed on the daily chart with lower shadow, which indicates a continuation of range bound action in the market. The Nifty has been moving within a narrow high low range of 17400-17000 levels in the last five sessions. Technically, such range moves more often result in decisive moves on either side (upmove above 17400 or down move below 17000 levels). The underlying trend of Nifty continues to be range bound with weak bias. The broader uptrend status remains intact as long as Nifty sustains above 16800 levels. A decisive decline below this area is likely to trigger downward correction and a sustainable move above 17450 could open renewed buying interest in the market for next week.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Domestic equities are stuck in a tight range for the 6th consecutive day with the key benchmark index Nifty moving within the 17,100-17,300 band for most part of the week. Markets are unable to sustain at higher levels as selling pressure emerges around 17,350-17,400. A strong close above this can take the Nifty towards 17600-17750 zones. Among the broader market, leisure and tourism segment is witnessing a lot of interest after the government removed most of the Codid-19 restrictions. Stocks in the multiplex, hotels, travel as well as entertainment space are likely to do well.
Ajit Mishra, VP – Research, Religare Broking Ltd
“Markets traded dull for yet another session and ended marginally lower, extending the prevailing consolidation phase. Firm global cues triggered an uptick in initial trades however profit taking in index majors across sectors pushed the benchmark gradually lower as the day progressed. Mixed global cues combined with erratic swings in crude are causing discomfort to participants and it might linger in the coming week as well. On the index front, Nifty has been hovering within a narrow range of 17,000-17,350 and either side break would trigger the next move. Meanwhile, participants have no option but to focus on sectors/stocks which are performing well while concentrating more on overnight risk management.”
