The stock market indices closed on a flat note while mid and smallcaps outperformed the benchmarks. Sensex closed 29 points, or 0.05 percent, down at 58,250.26 while the Nifty settled 9 points, or 0.05 percent, lower at 17,353.50.
"After correcting over 100 points in intraday , Nifty bounced from its support level of 17,250. It closed at 17,368 up by 5 points since September 7 close. In the last few days, the Nifty has shown some healthy corrections. There is a high probability that on September 9, Nifty may retest its all time high and close above those levels. Nifty is in a strong bullish trend and all corrections in it can be used as a buying opportunity with strict stop loss," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Palak Kothari, Research Associate, Choice Broking, said "The index continues to trade in lower lows formation from the last three trading sessions, but in the hourly chart the index has taken support from 50-HMA and bounced from there, which points out strength in the counter. On a Four-Hourly Chart, the Index has formed a Hammer Candlestick Pattern which points out buyers are active. All the key indicators like RSI, MACD & Stochastic are supporting the positive trend in the index. At present, the psychological level of 17,500 could be a resistance while on the downside, 17,200 may act as support for the index."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "On charts, the index has formed a double top formation, while at the same time it is consistently taking support near 17,250-17,280 levels. The texture of the chart suggests range bound activity may continue in the near future. For the day traders, 17,280 would be the key level to watch out for, and if the index rises above the same, the uptrend formation could continue up to 17,400-17,475 levels. On the flip side, dismissal of 17,280 could trigger one more leg of correction up to 17,250-17,200 levels."
Mohit Nigam, Head - PMS, Hem Securities said, "On the technical front, the market is witnessing a continuous positive trend and it has sustained well above 17,300-350 levels and we believe this up move will extend till 17,500 level in the short term. On the down side 17,100 is the immediate support in Nifty 50 followed by 16,900."
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said the "September series sentiment remains positive; broader market participation has also picked up marginally. Expect up-move to continue and suggest buying on dips. Trend support is seen at 16,760 while near-term support is seen at 17,080; on the higher side 17,500-17,600 can act as resistance while the medium-term target is seen at 18,000. Auto and Energy stocks provide value buying opportunities from the trading perspective; select banking stocks also remain attractive."
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