Staging a smart recovery from the day’s low, BSE Sensex jumped 743 points to end in the positive territory on Friday. Nifty 50 index, on the other hand, settled 8 points down at 15,683. The broader markets, yet again, underperformed as BSE MidCap index declined 158 points or 0.70 per cent and Smallcap index lost 220 points or 0.9 per cent. The market breadth remained negative on Friday as 2,026 stocks declined while 1,185 advanced. India VIX, the volatility index, cooled off 3.20 per cent to end at 14.80 levels.
Rohit Singre, Senior Technical Analyst, LKP Securities
After a strong volatile session index closed a day at 15683 with minimal loss and formed a pin bar candle pattern on daily chart which suggests dip has been used buy bulls to enter on lower levels. Index back in safe zone as it’s managed to close above 15600 zone holding above said levels structure still looks positive and on the higher side 15750-15820 will be next hurdle zone, fresh move towards 16k mark will be possible if sustain above 15820 odd levels.
Vinod Nair, Head of Research, Geojit Financial Services
The market continued to be in the consolidation phase witnessing broad-based selling, taking cues from the Fed policy and mixed global markets. US bond yields have cooled off from its high as global markets seem to have digested the latest Fed comments. China’s plan to sell metal reserves to check recent price hikes has pulled down the sector’s sentiments. The market is likely to continue in the consolidation phase for a short while, which can be an opportunity for investors to buy on dips.
S Ranganathan, Head of Research, LKP securities
Markets remained weak in morning trade amidst concerns regarding supply of paper from primary markets, corporates, OFS and other issuances at a time when the economy is not yet out of the woods. Metals led the fall today but markets recovered lost ground in afternoon trade as we saw buying emerge in consumer names as well as insurers.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Nifty briefly broke the 20-day moving average of 15596 today, but has recovered off lows. The index has not closed below the 20-DMA for well over a month. Hence, this is the immediate support to watch out for. Closing below the 20-DMA could lead to a short-term correction towards 15200-15100 in the days ahead.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the nifty index has formed a Hammer candlestick pattern in the recent trade on the daily chart, which indicates a further upward move in the counter. Moreover, the index has also tested good support at its prior level of 15431, which suggests immediate support for the near term. In addition, on an hourly chart, the index has turned upward from the oversold zones, which point out positive moves for the upcoming session. At present, nifty has an immediate support at 15430 levels, whereas 15900 may act as a resistance zone.