Nifty showed consolidation on its 3-day rise on April 5 and it showed a weakness of half a percent. However, this was expected after a rally of 3.4 per cent in the last three sessions. Nifty opened at 18,081 and closed 96 points lower at 17,957.40. It traded rangebound today.
Nifty formed a bearish candle on the daily chart. Today its closing was below its morning opening. Experts say that consolidation will continue with 17,700 as key support. Experts advise that long positions should be made on every downtrend as long as the support level in the index remains intact.
Chandan Tapadiya, Motilal Oswal Financial Services said, “Volatility has increased slightly, but overall volatility is low, it may attract buying interest on the downside in Nifty.
Mazhar Mohamed of Chartviewindia says as long as Nifty remains above the bullish gap zone between 17,791 and 17,703 recorded on April 4, any weakness should be treated as an opportunity to create new longs.
He said that traders taking a positionally long trade should also place a stoploss below 17700.
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Marginal call writing during the market today was seen at 18,000 strike and beyond at 18,200 strike. Whereas put writing was seen at the strike of 17,500 and strike of 17,600.
According to the data, Nifty can be seen trading at the level of 17,700 to 18,350 immediately.
The broader market continued its uptrend with the Nifty Midcap and Smallcap indices rising 1.4 per cent and 0.85 per cent respectively.
The banking index (Bank Nifty)
Bank Nifty opened positive at 38,731 but could not manage to cross the previous day’s high of 38,765. It came under pressure at the end of today’s trading. Some private banks saw profit-booking while PSU banks handled the index.
The index formed a bearish candle on the daily scale and closed 567 points lower at 38,068.
Chandan Tapadia said, “Bank Nifty rejected its highs of last six sessions. He said that it needs to stay above 38,000 to move towards 38,500 and 38,750 levels. Support level in Bank Nifty is 37,777 and 37,500 levels. But it can be seen.”
Talking about stocks, Tata Power, Polycab India, Havells, Dixon Technologies, Aditya Birla Fashion & Retail, Adani Enterprises, Adani Ports, Voltas, SRF, United Breweries, Marico, NTPC, Trent, Indian Energy Exchange, Tata Consumer Products, Positive set up was seen in City Union Bank, Power Grid Corporation of India, M&M Financial Services, United Spirits, DLF and Colgate Palmolive. On the other hand Federal Bank, Kotak Mahindra Bank, Indian Hotels, Lupine and Infosys saw a decline.
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