The benchmarks Sensex and Nifty 50 witnessed a standoff between bulls and bears on Wednesday before closing with marginal losses. At the closing bell, the Sensex BSE was 58,927, down 78 points or 0.13% while the NSE Nifty 50 closed at 17,546, down 15 points or 0.09% . Bank Nifty slipped 0.78%, dropping the 37,000 mark. Zee Entertainment was among the top winners, soaring 32%. Among Sensex constituents, Tech Mahindra gained 3.7% as the top winner while HDFC finished as the worst performance, down 1.46%. Technical analysts believe Nifty 50 is likely to face resistance in the 17,600-17,660 range now, a breakout above which could propel indices to new highs.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –
“After a strong pullback rally, the benchmark Nifty witnessed narrow-range activity near the resistance level of 17600. On Wednesday, after the muted opening, the Nifty hovered between 17525 and 17610 levels . It made a few attempts to break through the resistance at 17600 but failed to break through the hurdle due to lukewarm global signals and lack of follow-up buy activity. The intraday trading pattern suggests that the 17600-17625 levels would act as a key resistance level for day traders and below that a quick intraday correction to 17500-17450 is not ruled out. On the other hand, 17625 could be the range breakout level for day traders and above the same level the breakout continuation formation is expected to continue up to the 17665-17700-17725 levels.
Manish Hathiramani, Owner Index Trader and Technical Analyst, Deen Dayal Investments –
“The index did not break above 17600 at the close. Until we break above 17600 or break 17300, we will not see movement supported by volume and momentum. The trend is biased upward and, therefore, intraday dips or corrections can be used to enter long positions. “
Rohit Sigre, Senior Technical Analyst at LKP Securities –
“The index showed a very narrow range for a day and closed a day at 17547 with minimal loss forming a small bearish candle on the daily chart. The index has the same support zone around the 17500-17430 area any drop near said levels will again be buying opportunities keeping the immediate stop level below the 17450 area and resistance is approaching the 17600-17660 area also one can lock their long trading gains around said levels , the overall range is still between 17300-17800 and the breakout on either side will decide the final direction.
Vinod Nair, Research Manager at Geojit Financial Services –
“Despite encouraging signs in global markets, major national indices traded within a narrow range to reveal their first gains in today’s volatile session. However, the market as a whole was strong, with the exception of banks all major sectors were in demand and media, metals and real estate outperformed. Real estate stocks were the center of attention due to an increase in property registrations in September, while easing nervousness about the Chinese economy supported metal stocks. Investors have traded cautiously pending the outcome of the FOMC meeting that will clear the air on the Fed’s cutback plans.
S Hariharan, Head- Sales Trading, Emkay Global Financial Services –
“Macroeconomic factors dominated the flow this week, with ongoing news of a potential large bankruptcy in China prompting contagion concerns. In addition, global markets are also awaiting comments from the US FOMC regarding plans to reduce monthly bond purchases. The dollar index is also poised for a possible technical breakout to multi-month highs, which could negatively impact flows to risky assets. As a result, Nifty traded largely in a range after hitting new highs in the first half of September. National retailers’ sentiment remains relatively subdued due to these macroeconomic headlines. The Banknifty & Auto indices remain the main laggards, while the IT & FMCG sectors have strengthened further on relative strength over the past week. “