Indian benchmark indices ended lower after a volatile trading session as consolidation continues and fatigue for traders sets in. NSE Nifty 50 lost over 30 points to end trade below 18,350 levels at 18,307, whereas BSE Sensex ended 86 points down, at 61,663. Broader market indices also closed the day in red. India VIX, the volatility gauge, slipped over 3.27%. “Domestic market is now focusing on global trends for future direction due to lack of domestic triggers. Negative vibes in the developed market and aggressive comments from Fed officials have shaken the ongoing optimistic trend across the globe”, said Vinod Nair, Head of Research at Geojit Financial Services.
Ajit Mishra, VP – Research, Religare Broking
Markets are indicating the prevailing consolidation to continue and Nifty should decisively cross 18,450 levels to regain strength. Meanwhile, we reiterate our view to focus more on sector/stock selection citing restricted participation. Besides, we’re observing breakout failures across sectors so maintain strict risk management rules also in place.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a 4 week gain on Nov 18 by posting 0.23% weekly loss. It however recovered and cut its daily loss after making an intra day low. Cyclical sectors came under selling pressure even as there was a feeling of fatigue among traders due to subdued volatility. Broad market continued to underperform as A/D ratio remained much below 1:1. Cues from the US Fed members hinting at continued rate hikes on Thursday, pricked sentiments globally. Nifty could now find support at the 18,044-18,103 band while 18,409 could act as a resistance in the near term.
Ameya Ranadive, Equity Research Analyst, Choice Broking
On the daily chart, the Nifty fell lower throughout the day due to pressure, but added more than 100 points in the final hour of trading. The Nifty opened with a 39-point gain but ended with a 36.25-point loss due to supply pressure. The highest open interest for calls, according to the option chain, is 18400, which will act as immediate resistance, while the maximum open interest for puts is 18300, which will act as support. MACD and RSI are attempting to converge, signaling a lack of momentum.
Bank Nifty, on the other hand, gained 200 points in the final hour of trade before finishing down 20.60 points. Technically, Bank Nifty has support at 42,100 and resistance at 42,600. On an OI basis, Bank Nifty is seen in a range of 42,500 to 42,000, with the highest Call OI and Put OI.
On a broader scale, the Nifty 500 experienced 151 gains and 345 losses, exhibiting negative market breadth. Our benchmark indices have been making lower highs and bottoms over the last few days, indicating that profit booking is taking place at these levels. Because the broader market is declining, we recommend being stock specific.
