BSE Sensex ended in the red for the second straight day on Wednesday, while NSE’s Nifty settled flat at 15,576. Analysts believe that today’s fall in the markets points towards an impending consolidation. The broader markets outperformed the equity benchmarks in today’s session. S&P BSE MidCap index jumped 1.75 per cent or 380 points to end at 22,140.66, while S&P BSE Smallcap index added 1.29 per cent or 303 points to settle at 23,826.12. During intraday, Midcap index scaled fresh 52-week high of 22,163.68 and Smallcap index 23,841.67. Market breadth was largely positive as 2,139 stocks advanced while 974 scrips declined.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have been a tad weak today. This can be attributed to profit-booking or offloading of positions. This does not disrupt the overall trend of the market which continues to look bullish. We should be looking at 15900 as the next potential target. A good support lies at 15300 and as long as that level holds on a closing basis, the market trend is in the hands of the bulls. Traders can look at dips or intra day corrections as an opportunity to add long positions for higher targets.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Todays fall in BSE Sensex and Nifty 50 does not point at upcoming weakness. However, it does point towards an impending consolidation. If we look at the immediate short-term, the level of 15600 has been witnessing heavy call writing; this level continues to hold maximum Call OI. This level will continue to pose resistance for the immediate near-term. The major area of concern is the VIX which stands at one of its lowest levels of the recent months; the present levels were seen only in the early 2020. So, there are possibilities of a spike in the volatility as well in the near term. We expect the Index to oscillate between 15100-15650 in the near term.
Sameet Chavan, Chief Technical Analyst, Angel Broking
Today’s move can’t be termed as a fall. This is just a minor profit booking after seeing a good move recently and importantly after reaching record highs. As of now there is no major reversal seen as we don’t see any major resistance before 16,000. In between minor profit booking should be treated as a normal phenomenon. As far as supports are concerned, 15,400-15,300 should be seen as key levels.
S Ranganathan, Head of Research at LKP Securities
Indices staged a smart recovery in late afternoon trade after being in the red for the most part of the day. Broader markets too displayed resilience as we saw interesting buying emerge in state-owned Banks, Auto Ancillaries and in unlocking themes across sectors.
Vinod Nair, Head of Research at Geojit Financial Services
Ahead of the MPC policy, domestic market continued its volatility with a mixed bias. Selling was witnessed in Financials, IT and FMCG stocks but it reduced towards the close of trading. Weakness across US and Asian markets also added to the negative trend. PSU banks attracted buyers in hopes that the government will soon finalize the list for privatisation. In the policy, RBI is expected to focus on economic growth by maintaining the status quo on policy rates and ensuring liquidity while keeping an eye on the inflationary pressure due to rising commodity prices.