After a strong rally in the last trading session, profit-booking was seen in the market on April 5 i.e. in today’s business. Financial stocks especially HDFC twins became the biggest victims of this sell-off. On the other hand, buying was seen in auto, power and FMCG. At the end of trading, the Sensex closed at 60,176.50, down 435.24 points, or 0.72 per cent. On the other hand, Nifty closed at the level of 19957.80, down 96.00 points or 0.53 percent.
Rupak Dey of LKP Securities Says that Nifty remained sideways in today’s trading session. Nifty faced resistance around the previous high before closing in the red mark at the end of trading. Although Nifty closed above its 200-DEMA. Which indicates that the market remains positive.
He further said that on the upside, the level of 18150 can act as an immediate resistance for Nifty, while on the downside, support is seen at 17,800.
How will the market move tomorrow?
Choice Broking’s Palak Kothari Says that after positive opening, Nifty continued to trade with negative trend throughout the day and profit-booking was seen from upper levels. At the end of trading, the Nifty closed at the level of 19957.80, down 0.53 per cent, while the Bank Nifty closed at 38,067.90, down 1.47 per cent. From a technical perspective, Nifty faced resistance from the 18100 level but managed to close above its 50day SMA.
Nifty has taken support from the previous horizontal line and closed above it. This indicates that buyers are active in the market. On the other hand, the Momentum Indicator MACD was also seen trading with a positive crossover on the daily chart which is a bullish sign.
Nifty has managed to close above the 21- and 50-HMA, if it stays above this level then it may rise further. Support is seen for Nifty at 17,800 while the first hurdle is seen at 18,150. On the other hand, there is support for Bank Nifty at 37,700 while there is resistance at 38,700 for it.
Sharekhan’s Gaurav Ratnaparkhi Says that with the recent rally Nifty has reached its Daily Upper Bollinger Band. With this, it has also reached the falling trendline formed from the high of October. These parameters kept pressure for the second day in a row, due to which Nifty formed a distribution triangle below these barriers and turned lower towards the end of the trading session. Nifty has formed an in side bar pattern on the daily chart. Which is a sign of weakness coming from the upper levels on the upside. In such a situation, it seems that Nifty may show a slight decline once again before gaining further momentum. There is strong support for Nifty at 17,790-17,700 while resistance is seen on the upside at 18100 and 18200.