Volatility may continue, support for Nifty visible at 17,750-17,770: Experts

Nifty ended the week below the psychological 18000 mark and is likely to remain weak in lieu of absence of any positive trigger, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Rakesh Patil
January 09, 2023 / 07:52 AM IST
Ajit Mishra, VP - Technical Research, Religare Broking | Weak global cues are largely weighing on sentiment in absence of any major trigger from the domestic front. We may see some breather in the Nifty index after the recent slide but the tone is likely to remain negative, citing the weak structure of several index heavyweights. Participants should align their positions accordingly while keeping a check on leveraged trades.
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Indian market lost more than 1 percent in the week ended January 6 ahead of Q3 earnings starting this week. Indication of further rate hikes by Federal Reserve going ahead also weighed on investors. For the week, BSE Sensex lost 940.37 points or 1.54 percent to settle at 59,900.37 and Nifty50 fell 245.85 points or 1.35 percent to close at 17,859.45 levels.
Ajit Mishra, VP - Technical Research, Religare Broking | Weak global cues are largely weighing on sentiment in absence of any major trigger from the domestic front. We may see some breather in the Nifty index after the recent slide but the tone is likely to remain negative, citing the weak structure of several index heavyweights. Participants should align their positions accordingly while keeping a check on leveraged trades.
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Ajit Mishra, VP - Technical Research, Religare Broking | Weak global cues are largely weighing on sentiment in absence of any major trigger from the domestic front. We may see some breather in the Nifty index after the recent slide but the tone is likely to remain negative, citing the weak structure of several index heavyweights. Participants should align their positions accordingly while keeping a check on leveraged trades.
Rupak De, Senior Technical Analyst at LKP Securities | The momentum indicator RSI (14) is in bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as support for the falling Nifty; a decisive fall below the said level may take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a recovery may come.
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Rupak De, Senior Technical Analyst at LKP Securities | The momentum indicator RSI (14) is in bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as support for the falling Nifty; a decisive fall below the said level may take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a recovery may come.
Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities | The market is now in an oversold territory, there is a strong possibility of a quick pullback rally. For bulls, 18000 would be the immediate hurdle and below the same the index could slip till 17750. Further correction may drag down the index to 17650. On the other side, if the index moves above 18000 it could move up to 18100-18175 levels.
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Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities | The market is now in an oversold territory, there is a strong possibility of a quick pullback rally. For bulls, 18000 would be the immediate hurdle and below the same the index could slip till 17750. Further correction may drag down the index to 17650. On the other side, if the index moves above 18000 it could move up to 18100-18175 levels.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Nifty ended the week below the psychological 18000 mark and is likely to remain weak in lieu of absence of any positive trigger. The onset of Q3 earnings from next week could provide fresh direction to market. Overall the expectation is running high and any disappointment could cause profit booking in the market. IT sector is likely to remain in lime light as tech majors will announce their results starting with TCS on Monday. TCS is expected to see 1.4% Q-o-Q growth with marginal increase in margin.
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Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Nifty ended the week below the psychological 18000 mark and is likely to remain weak in lieu of absence of any positive trigger. The onset of Q3 earnings from next week could provide fresh direction to market. Overall the expectation is running high and any disappointment could cause profit booking in the market. IT sector is likely to remain in lime light as tech majors will announce their results starting with TCS on Monday. TCS is expected to see 1.4% Q-o-Q growth with marginal increase in margin.
Apurva Sheth, Head of Market Perspectives, Samco Securities | Market participants will keenly watch the inflation numbers of US and China. With the Fed still maintaining its hawkish tone, the US inflation numbers will be highly significant. Back home, the result season of Q3FY23 will kick off with major IT companies reporting their quarterly numbers. The attrition rates of IT Companies will be closely looked out after they reached the peaks in Q2. Stock specific movements will be prominent and as investors react to earnings misses and beats, they are advised to assess the company's long-term potential rather than basing their investment decisions solely on quarterly performance.
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Apurva Sheth, Head of Market Perspectives, Samco Securities | Market participants will keenly watch the inflation numbers of US and China. With the Fed still maintaining its hawkish tone, the US inflation numbers will be highly significant. Back home, the result season of Q3FY23 will kick off with major IT companies reporting their quarterly numbers. The attrition rates of IT Companies will be closely looked out after they reached the peaks in Q2. Stock specific movements will be prominent and as investors react to earnings misses and beats, they are advised to assess the company's long-term potential rather than basing their investment decisions solely on quarterly performance.
Rohan Patil, Technical Analyst, Samco Securities | If we observe broader time frame (weekly chart), the front-line index is trading between the 9 & 21 EMA which is placed at 18,070 & 17,826 levels. From past three weeks, bears are making a strong attempt to drift below 17,800 levels but 21 EMA is acting as an anchor support for the Index. The volatility may continue over the short term with predominant weakness. On the lower end, support is visible at 17,750 levels while on the upper end, resistance can be seen at 18,250 levels, above which a bullish reversal may happen.
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Rohan Patil, Technical Analyst, Samco Securities | If we observe broader time frame (weekly chart), the front-line index is trading between the 9 & 21 EMA which is placed at 18,070 & 17,826 levels. From past three weeks, bears are making a strong attempt to drift below 17,800 levels but 21 EMA is acting as an anchor support for the Index. The volatility may continue over the short term with predominant weakness. On the lower end, support is visible at 17,750 levels while on the upper end, resistance can be seen at 18,250 levels, above which a bullish reversal may happen.
Rakesh Patil
Tags: #Market Cues #Nifty #Sensex #Slideshow
first published: Jan 9, 2023 07:52 am