After a positive opening, Nifty showed strength in first half and made an intraday high at 16083.60 level but erased its gain and closed at 15782.15 level with a loss of 25.85 points.
However, Bank nifty closed the session at 33121.35 level with a loss of 410.80 points. Among sectors, auto index up 2.5% percent, while capital goods, FMCG, pharma, oil & gas indices up over 0.5-1 percent each. While Nifty Energy, Commodities & Metal were top losers.
Stocks like TATAMOTORS, SUNPHARMA, M&M , EICHERMOT & UPL were the top gainers while HINDALCO, JSWSTEEL, NTPC & ICICIBANK were the prime laggards. Technically, The Nifty has formed a bearish candle on the weekly chart which indicates downside movement for the upcoming session. Moreover, Nifty has faced resistance from rising trendline and showed selling pressure which is a sign of selling of higher levels. In addition, Nifty has been sustained below the neck line of the Head & Shoulder pattern which indicates southward direction for the upcoming session.
However, the momentum indicators MACD & Stochastic were trading with a negative crossover and entered the oversold zone. However, till now, there is no reversal sign. The Nifty may find Strong support around 15700 levels, while on the upside 16100 may act as an immediate hurdle for the Nifty crossing above the same can attract fresh buying. On the other hand, Bank nifty has support at 32600 levels while resistance at 34000 levels.
Source: Choice India