Equity benchmarks Sensex and Nifty ended on a flat note on Thursday as monthly derivatives expired amid a weak trend in global markets and sustained foreign fund outflows. After trading range-bound through the session, the 30-share BSE Sensex ended just 4.89 points or 0.01 per cent higher at 55,949.10. Similarly, the broader NSE Nifty advanced 2.25 points or 0.01 per cent to its fresh closing peak of 16,636.90.
"Nifty traded in a very small range. It closed flat at 16335. Nifty has been taking resistance around it's all time high level of 16700. Since the last 2 days its has been making a Doji type candle, which means there may be a possibility of a correction. Traders in long positions and advised to maintain caution. Nifty has support in 16550 – 16580 range below which it can test 16450 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "On technical charts, the Nifty has formed a double top formation. The narrow range activity near the 16,700 resistance level indicates indecisiveness between the bulls and bears. For the traders, 16,680 could be the immediate hurdle. However, we can expect a quick uptrend rally up to 16,725-16,775 levels if the index succeeds to clear the intraday resistance of 16,680. Below the same, the correction wave could continue up to 16,560-16,520 levels."
Deepak Jasani, Head-Retail Research, HDFC Securities, said, Nifty has once again started to form flat closes day after day, like it did in Aug 05-11 period. However post Aug 11, the Nifty broke upwards of the range closes. Advance decline ratio fell compared to the previous day but is still at 1:1, suggesting some deterioration in the broader market sentiments. As long as Nifty is not able to post healthy day on day gain, the broader market will struggle to bounce up. 16712-16603 is the band for Nifty for the near term and any breach either way could take the Nifty in that direction.
Mohit Nigam, Head-PMS, Hem Securities said, "Sectorally, metals, media, pharma, PSU banks and auto closes lower whereas FMCG and realty closes higher with the help of momentum in heavyweights in respective sectors. Bharti Airtel's stock fell 4 percent after company's fundraising news, Intellect Design gains on a multi million dollar deal win, Marksans Pharma jumps on USFDA approval for Acetaminophen tablets, Affle India locks up at upper circuit as board decides to split 1 equity share into 5, Thermax gained momentum as its subsidiary wins order of Rs 293 crores. Crude futures trade flat to morning levels of around 67.8 while gold futures slips to 1790 dollars."
A key event to be watched shall be Jackson Hole's meet which begins later today to gauge the taper trajectory timeline of the US central bank. On the technical front, 16,500 and 16,750 are immediate support and resistance in Nifty 50, Nigam said.
Sachin Gupta, AVP-Research, Choice Broking said, "Technically, the Nifty index is in a bullish trend but still finding an immediate hurdle around 16700 marks. All the key indicators are supporting the positive trend in the index. However, we remain cautious on the market until we get any positive trigger above the immediate resistance. At present, the key level 16,712 may be considered a resistance zone while on the downside, level 14,450 would act as a support zone."
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