After 4 days of rally, there was a slight profit-booking in the market today. Sensex closed down 621 points. At the same time, Nifty has also dived 179 points. IT and realty stocks were the biggest losers. Along with Nifty, heavy selling has also dominated the Nifty Bank and Midcap indices. FMCG and metal stocks also remained under pressure. On the other hand, auto, consumer durables stocks rose marginally. Banking index closed higher from lower levels. In the end of trading, the Sensex closed at 59,601.84, down 621.31 points, or 1.03%. At the same time, Nifty has broken 179.35 points or 1.00% and closed at the level of 17745.
technical view
Nifty today formed a small candle with longer lower shadow on the Daily Scale which is indicating buying in the downside. Chandan Tapadiya of Motilal Oswal says that Nifty will have to stay above 17,777 to move towards 18,000 -18,200. Now the support zone for Nifty has come to 17600 -17500.
Know how the market may move tomorrow
Manish Hathiramani of Deen Dayal Investments says that despite opening with a fall, it again recovered from its lower levels. The short term trend of the market will remain positive till Nifty does not break the label of 17200. It would be advisable to take an intraday correction as a buying opportunity for the target of 18050-18100. For this, put a stop loss of 17200 on the closing basis.
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Sachin Gupta of Choice Broking Says that there is immediate resistance on Upper Bollinger Band formation for Nifty on Technical chart. However, on the Four Hourly chart, Nifty is still trading above the horizontal line which acts as an immediate support zone.
Technical indicators like MACD and RSI are still trading with positive crossovers which is supporting the bullish trend. Currently Nifty has support at 17600. At the same time, the resistance is visible at 18000. On the other hand, there is support for Bank Nifty at 36700 and resistance at 38000.
Shrikant Chauhan of Kotak Securities Says that the volatility in the market will continue in the near term as well. Keeping this in mind, a level based strategy would be the best strategy for day traders. 17700/59000 will be the immediate support level for Nifty/Sensex. If this support does not break, then we can see the level of 17800-17875/59800-60000. On the other hand, if this support breaks down, then we can see a decline up to 17650-17610/58800-58600.
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