Benchmark indices opened on the positive side following global cues but in the second half wiped off all their gains. Bulls were unable to safeguard the 16900 levels and have dragged to 16651.85 intraday low.
Nifty ended at 16682.65 with minor gain of 5.05 points or 0.03%. The RBI on Wednesday raised its key lending rate by 40 basis points to 4.40 and cash reserve ratio by 50 basis points somewhat dented the positive sentiments. Also a US Fed hikes rate by 50 bps was also a major event as the market reacted differently.
On the sectoral front, majorly only Nifty IT supported the index with gain of 2.07%. On the flip side Nifty Realty shaded the most with a loss of 1.62% , while Nifty Pharma , FMCG , Oil and gas ended in red within half to one percent.
In Nifty, TECHM, HEROMOTOCO and INFY were the top gainers while INDUSINDBK, TATACONSUM and BRITANNIA were the prime laggards. Technically, Nifty has formed a bearish candle on the daily chart marginally lower to yesterday’s close suggesting more weakness are in the line. Indicators such as MACD, RSI still remain on the weak side. 200 simple daily moving averages would be acting as resistance in coming days. Even hourly charts suggest no major pullback expected till 16950 levels are taken off. Investors and traders are advised to work with option strategies to neutralize the volatility.
Coming to the OI Data, on the call side highest OI witnessed at 17000 followed by 16900 strike price while on the put side, the highest OI was at 16500 followed by 16400 strike price. On the other hand, Bank nifty has support at 34500 levels while resistance at 36200 levels.
Sumeet Bagadia
Executive Director
Choice Broking
Source: Choice India
48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.
