Sensex shots gain in sequence; Clever support at 18100, pullback rally could take index to 18300-18350


The banking and financial sector as well as RIL were among the main obstacles. (Photo: REUTERS)

Dalal Street ditched its gains in the final hours of trading on Wednesday to close in the red, ending the two-day winning streak. S&P BSE Sensex closed 206 points or 0.34% lower at 61,143 while NSE Nifty 50 lost 57 points or 0.31% to end at 18,210. Bank Nifty closed 363 points lower at 40,874 The midcap and smallcap indices outperformed the flagship indices and closed in the green. Banking and financial stocks as well as Reliance Industries were among the main drag on Sensex

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd –

“Technically, the index formed a small bearish candle near the resistance level of 18350, but at the same time, on the intraday charts, it maintained a higher lower series formation. Prior to the monthly F&O expiration, the volatility may continue, therefore level based trading would be the ideal strategy for day traders. For bulls, 18100 would be the key support level and if the index breaks the level there is a strong possibility of ‘A rapid intraday pullback rally to the 18300-18350 levels. In contrast, the 18100 layoff could eventually open a new wave of correction up to 18060-18000.

Manish Hathiramani, Owner Index Trader and Technical Analyst, Deen Dayal Investments –

“We went very close to 18350 but failed to close above. If we are unable to do so and also fail to break the 18000, the Nifty will become range tied and trade in a side zone. It is a wait and watch situation and traders should avoid directional calls. “

Rohit Sigre, Senior Technical Analyst at LKP Securities –

“The index has formed a strong area of ​​obstacles near the 18325 area trading below said levels we may see further gains, but if we manage to break through these levels decisively the next move towards the 18500 area -18600 cannot be ruled out, so a long time would be suggested above. 18325 zone and, on the other hand, the immediate support is approaching the 18150-18000 zone. Long traders can also stop there below the 18k mark.

Sachin Gupta, Assistant Vice-President, Research, Choice Brokerage –

“Technically, the index has traded in an uptrend with higher highs and higher lows forming which suggests long-term bullish strength. On a four hour chart, the index traded above the horizontal line, indicating a new area of ​​support. Additionally, the index traded with a positive cross of 9 * 21 Moving Average, which can be viewed as a bullish cross that shows bullish movement in the meter. Currently, the index has immediate support at 18,000 levels while resistance stands at 18,380 levels. “

Vinod Nair, Research Manager at Geojit Financial Services –

“Echoing weak global sentiment, national indices have slipped on negative ground in today’s choppy trading. Bleeding financial stocks pulled the market despite improving asset quality and favorable results. Stagflation concerns and soaring US-China tensions have forced global investors to trade cautiously ahead of another batch of second-quarter corporate earnings reported.

Gaurav Udani, CEO and Founder ThincRedBlu Titles

“Since the last trading sessions, Nifty has had lower highs and lows which is a bearish sign. Nifty closed 100 points negatively at 18170 after taking resistance at 18340. Nifty has support in the range 17980 – 18020 and resistance in the range 18320-18340. Traders are advised to be careful in long positions and maintain a strict stoploss. “

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