After making a new record high at 15,915.35 levels, the index showed further correction on Monday session and closed at 15814.70 levels with a loss of 45 points, while the Banknifty slipped more than 200 points from the day high of 35,576.95 levels and settled at 35,359.45 marks.
Sectoral indices traded on a mixed note led by Nifty Metal and pharma with average gains of 1 percent for the day. The top gainers were Hindalco, Dr Reddy's, Tata Steel, Tech Mahindra whereas HDFC Life, Titan, TCS were the top losers for the day.
According to Sumeet Bagadia, Executive Director, Choice Broking, technically, the index has taken a resistance at Upper Bollinger Band formation that suggests some profit booking for the near term. Moreover, the index has also formed like a Bearish Marubozu candlestick on the daily chart, which indicates further correction for the upcoming session. In addition, a momentum indicator RSI (14) & MACD also indicated negative crossover on the daily timeframe. At present, the Nifty seems to have resistance at 15,900 levels while immediate support comes at 15,650.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said, the markets witnessed a range-bound activity near its all-time high level. The weekly opening of the Nifty / Sensex was positive, the benchmark index Nifty/ Sensex opened at 15,915.65/ 53,126.73 but due to lack of follow-through buying it consolidating in the range of 15,800 to 15,910/ 5,2700 to 53,100 levels.
"Technically, on Monday (June 28) the market made a fresh high but failed to sustain above the 15,900/ 53,100 level. However, on the intraday charts the index is still maintains higher bottom series formation which is broadly positive for the market. We are of the view that, as long as the Nifty/ Sensex is trading above 15,750 /52,550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15,900- 15,950/ 53,100-53,500. On the flip side, below 15,750/ 52,550 would increase further weakness up to 15,700-15,660/ 52,000-51,700," he said.