The markets closed yet another day with slight profit booking despite opening in the positive territory. Among the sectors, Nifty IT was the top gainer with gains of around 0.64 percent for the day while banking and financial services being the top loser with Nifty Bank down by 0.73 percent. It seems that each day markets are treading very cautiously.
Adani group stocks continued its poor performance on the markets with Adani Total Gas and Adani Transmission hitting lower circuits for the past few trading sessions. But with the stronger markets and the bull run intact, it's just a matter of time before the market moves out of the consolidation zone and continue the rally. The support and resistance at 15,600 and 15,900 need to be watched closely, an analyst said.
Nifty continues to remain in medium term uptrend with buying advisable on aggressive dips. Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said, "we expect volatility before momentum support gets triggered. In the near-term, expect range bounce movement as short-term indicators are stretched. IT, metals and pharma are expected to do well while BFCI and mid cap stocks can be bought on corrections," he said.
Nifty closed up the month and quarter, but fell for the third consecutive day. Advance decline ratio has become equal. Deepak Jasani, Head of Retail Research, HDFC Securities, said, "This suggests tug of war between bulls and bears, where nobody seems to be winning for now. 15,674 is the crucial support while 15,772 is the resistance for the near term. So far the falls in the Nifty have been muted. We are almost at the end of the results season, hence the focus could shift from stocks to the index or large caps for the next fortnight," he said.
Technically, the market has formed a double top at 15,835-52,850 levels and closed below the lowest of the previous day, which was at 15,724, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. "Based on that, Nifty would fall to 15,650-15,620 levels. However, as the underline trend of the market is still positive and range-bound, our strategy should be to buy between 15,650-15,600 levels. Keep a final stop loss at 15,550 for the same. On the up-side, 15,770 and 15,840 would be major hurdles," he said.
On the technical chart, the index has been finding resistance at Upper Bollinger Band formation and 15,915 levels, which act as an immediate hurdle for the participants, said Sumeet Bagadia, Executive Director, Choice Broking. "On an hourly chart, the index showed a negative crossover of 9 & 21 HMA that suggests some profit booking for the near term. A momentum indicator RSI & MACD suggested negative bias for the upcoming session. At present, the nifty seems to have resistance at 15,915 levels while immediate support comes at 15,650," he added.
