Nifty showed weakness for the second consecutive session on 6 April. Banks, financial services, IT and auto stocks contributed to the downside in the market. The index opened at 17,843 and slipped to the day’s low of 17,780. But the support level of 17,700 remained in it. Nifty closed at 17,808, down 150 points.
Nifty has formed a bearish candle on the daily chart as it closed below the opening level. However, experts say that as long as the index maintains the crucial support of 17,700, it is likely to bounce back to the recent highs with the bank.
Mazhar Mohamed of Chartviewindia said, “Nifty is still holding above the bullish gap zone of 17,791 and 17,703. If it further falls in this zone, then buying interest will be formed in the index.”
If the index sustains above 17,703, it may touch the recent high of 18,115. But intraday traders can expect some resistance near 17,920.
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He said that if Nifty is not able to sustain above 17,700 on closes basis, then weakness can be expected in it.
Mohamed said that one should look for opportunities to make long from the current weakness with a stop-loss below 17,700.
Chandan Tapdia of Motilal Oswal Financial Services said that if we look at the action of stocks today, Indian Hotels, Tata Power, SAIL, Container Corporation, NALCO, Bank of Baroda, Coal India, Vedanta, HPCL, NTPC, Jindal Steel & Power, IOC , Canara Bank, AU Small Finance, Bank, NMDC, Power Grid Corporation, BPCL, Tata Steel, Torrent Power, City Union Bank, Bharti Airtel, BHEL and DLF saw positive set ups.
On the other hand, shares of IRCTC, Mphasis, HDFC, Torrent Pharma, Tech Mahindra, Infosys, HCL Technologies and Apollo Hospitals saw weakness.
Banking Index (Bank Nifty)
Private banks showed correction in another session, which also led to correction in the market, while private banks showed a rally on 4 April.
Bank Nifty opened with gap down at 37,711 and underperformed in broader market. Along with this, Bank Nifty was seen trading at lower levels during the entire session today.
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The index showed consolidated trading and closed down 435 points at 37,633. This formed a bearish candle on the daily scale.
Chandan Tapdia said, “Bank Nifty will have to stay above 37,500 levels to move higher towards 37,750 and 38,000 levels. On the downside, it may see support at 37,250 and 37,000 levels.”
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