Nifty opened on a positive note and moved upward throughout the session as Bulls were seen active in the index to close at 15,860.35 levels with a gain of 69.90 points. While Bank nifty showed more strength than Nifty index and closed the session at 35,364.65 levels with a gain of 537.65 points. Midcap and Smallcap indices trading with 0.5-1 percent gain. Except FMCG and energy, all other sectoral indices ended in the green led by metal and PSU Bank.
According to Sumeet Bagadia, Executive Director, technically, the Nifty has formed a bullish marabozu candle on weekly charts, which suggests strength for the upside in upcoming days. "Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. The Nifty continued to trade with the support of 21 DSMA i.e.15708 which adds strength in the counter. At present, the nifty seems to have resistance at around 15,900 levels. Crossing above the same can show 16200 levels while immediate support comes at 15,600 levels," he said.
Sensex jumped 226 points to end at a fresh lifetime high on Friday, boosted by ICICI Bank, Axis Bank and Infosys amid positive cues from global markets. Tata Steel was the top gainer in the Sensex pack, rising over 4 per cent, followed by Axis Bank, SBI, ICICI Bank, Bajaj Finserv, L&T and Maruti. On the other hand, Reliance Industries, NTPC, HUL, Titan and Asian Paints were among the laggards.
Benchmark indices ended the day’s session on a positive note amid buying interest seen in Banking stocks with Nifty Bank closed +1.54 percent and Nifty 50 ended +0.44 percent. Markets continued to face resistance on important levels of 15,900 in Nifty 50. Nifty PSU Bank and Nifty Metal surged by +2.64 percent and +2.61 percent. IT sector ended in Green. In the 50-share pack Nifty, Tata Steel was the biggest gainer, up 4.68 percent. Axis, Sbi and ICICI Bank were among other gainers. Reliance was the top loser in the pack, down 2.28 per cent. HUL, NTPC and Titan Company were other losers in the pack.
The market has spent almost two weeks below the 15,902 levels, however, if this level is broken, the Nifty will have to move to the 16050/16150 (53750) level, according to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. According to options statistics and retracement levels, the Nifty / Sensex will find support at 15800/52800 and 15670/52300. The Nifty will derail below 15670/52300 and could fall to 15550/51800 or 15450/51500. Our strategy should be to reduce the position between the levels of 16050/16150 (53750).
The Nifty 50, Sensex and Nifty IT indices have reached new levels but the Bank Nifty is still lagging behind. If the Bank-Nifty crosses the 35800 level, it will be able to push back 37710 but all this should happen in the next one week. The focus should be on select technology companies, auto and financial stocks.