The benchmark equity indices ended Friday’s trading session in positive territory. The NSE Nifty 50 gained 160.15 points or 0.75% to settle at 21,622.40 points. While S&P BSE Sensex closed 496.37 points higher or 0.70% to settle at 71,683.23 points. Nifty Bank ended lower by 12.40 points or 0.03% to settle at 45,701.15 points.
The broader indices ended in positive territory, with midcap stocks leading the gains. On the sectoral front, Oil & Gas and FMCG stocks led the gains. The Nifty 50 lost 272.15 points or 1.24% from last Friday.
The laggards include IndusInd, HDFC Bank, Kotak Mahindra, SBI, and Adani Ports. The Indian Volatility Index (India VIX) closed down by 1.36%.
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“The Nifty opened gap up and consolidated in a narrow range for the day to close with gains of 176 points. On the daily charts we can observe that the Nifty is witnessing a counter-trend pullback of the fall from 22124 to 21285,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
The 50% and 61.82% Fibonacci Retracement levels are placed at 21705 – 21804 where the expectation is to resume selling pressure. The hourly momentum indicator has reached the equilibrium line indicating that the pullback is nearing completion, Overall, expectations are that the trend is negative, and this pullback should be used as a selling opportunity. In terms of levels, 21705 – 21804 is the immediate hurdle zone while 21570 – 21500 is the crucial support zone, said Gedia.
“Bank Nifty was comparatively weak today. It gave up most of the gains and ended marginally in the green. Overall, we believe that the bank Nifty can consolidate in the range of 46500 – 45500 from a short-term perspective. a breach of 45500 can lead to a further decline till 45200 – 45000,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
“Markets witnessed some respite after 3 days of decline and gained over half a percent. Firm global cues triggered a gap-up start in Nifty, followed by range-bound movement till the end. Meanwhile, a mixed trend on the sectoral front kept traders occupied wherein FMCG, metal, and energy edged higher while banking continued to reel under pressure. The broader indices maintained their outperformance and gained over a percent each,” said Ajit Mishra, senior vice president of technical research at Religare Broking.
Nifty has reclaimed its short-term moving average but lacks decisiveness. We reiterate our cautious view citing the prevailing underperformance of the banking and eyeing the 21,700-21,850 zone to act as a hurdle. Traders should continue a stock-specific approach and prefer hedged trades, said Mishra.
