After buying and selling larger in morning offers, key benchmark indices turned unstable in midday offers on Wednesday and ended with marginal losses. The BSE Sensex closed 109.94 factors or 0.20% decrease at 54,208.53, and the Nifty shit store 19 factors or 0.12% down at 16,240.30, a day forward of weekly F&O expiry. Sectorally, shopping for was seen within the FMCG and Pharma, whereas promoting was seen within the financial institution, capital items, realty, IT, steel, PSU Bank, and oil & fuel indices. In the broader markets, BSE midcap index ended on flat observe, whereas BSE Smallcap index closed 0.3% larger. Domestic equities are prone to stay unstable for subsequent few session because the markets will proceed to stay influenced by incremental information flows associated to central financial institution actions, particularly the US Fed, and inflationary developments, in keeping with analysts.
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities
“Nifty: 15 min chart shows short term uptrend intact. Zooming into 15 minute chart, we see that Nifty has taken a breather after the smart rally seen on Tuesday when it convincingly broke out of a 3 day range and the recent high of 16084. The positive MA crossover is still intact as the 20 period MA on the 15 min chart is above the 50 period MA. The Nifty looks set to witness a further pullback rally in the very near term as long as the crucial support of 16071 is not broken.”
Vinod Nair, Head of Research at Geojit Financial Services
“With the support from Pharma and FMCG stocks, the domestic market had a steady run until the weak opening of the European market. UK’s soaring retail inflation number along with Fed Chair’s reassurance on bringing down the inflation, disturbed the sentiment, risking sharper rate hikes. With prospects of a sizeable interest rate hike by the global central banks, investors are advised to allocate higher weightage to sectors that are least affected by such policies like defensives.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty found resistance at the crucial resistance at 16400 and slipped below before closing with a marginal loss. On the daily chart, the index remained well below the short-term moving average. The daily RSI is in the bullish crossover. The trend is likely to remain sideward over the near term. The resistance on the higher end is placed at 16400. On the lower end, support is visible at 16000.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“The sharp rally in the previous session failed to add fizz in today’s trades, as the market did not capitalise on the firm start and rather turned range-bound to end marginally lower. The rampant FII selling has been weighing on investors’ minds, and worries about subdued growth going ahead due to rising interest rates is hurting the sentiment. On daily charts, the Nifty has formed a small bearish hammer kind of candlestick formation, which indicates a range bound activity in the near future. For day traders, 16200-16150 levels would act as key support zones. Above the same, the index could move up to 16400-16450. On the flip side, below 16150, uptrends could be vulnerable and could retest the level of 16050-16000.”
Om Mehra, Research Associate , Choice Broking
“In the daily chart Nifty has ended with a bearish candle. However 16200 levels are protected throughout the day. Index might face high volatility on weekly expiry day. Riding against the trend may not be beneficial for short term traders. According to volume profile 16100 and 16000 may act as immediate support. Indicators such as MACD and RSI are still struggling to overcome from oversold zone in the daily time frame. From the time cycle prospect Index would remain highly volatile till 27th May of this month. Bollinger band indicates 16650 would remain strong resistance in coming days. On the other hand, Bank nifty has support at 33400 levels while resistance at 35000 levels.”
Source: www.financialexpress.com”