The stock market indices closed on a buoyant note at end of trading session on Thursday.
After a gap-up opening, the index covered its early gains and made an intraday low at 17379.60 levels while in the second half it showed strength and managed to close above 17,500 levels at 17,516.85 levels with a gain of 47.10 points, said Palak Kothari, Research Associate, Choice Broking.
Bank Nifty closed the session at 37082 levels with a loss of 202.25 points.
At close, the Sensex was up 157.45 points or 0.27 percent at 58,807.13, and the Nifty was up 47 points or 0.27 percent at 17,516.80. About 2046 shares have advanced, 1153 shares declined, and 115 shares are unchanged.
On the sectoral front, Nifty Media and FMCG were the top gainers while buying is also seen in the metal and oil & gas stocks. However, the reality and IT indices are witnessing some selling. Stocks like ITC, LT, Asian Paint, UPL & Reliance were top gainers. HDFC Bank, Titan, NESTLEIND, and NTPC were the prime laggards.
Kothari said, "On the technical front, the Index has been trading in higher high's and higher lows formation for the last three days which suggests strength for an upside in the index.
"The index has given closing above …lll0, which suggests a northward direction in the counter. Daily Momentum indicator MACD & Stochastic is trading with a positive crossover which suggests upside momentum in the upcoming session. At present, the Index has support at 17,300 levels while resistance comes at 17,600 levels. On the other hand, Bank nifty has support at 36,500 levels while resistance at 37,500 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd，said, "despite witnessing a choppy trading session, the markets maintained their positive momentum as investors put money in the beaten down stocks. After the post morning selloff, the Nifty took the support near 17400 and reversed sharply to hover between 17425- 17535 levels."
On daily charts, the index has formed a Hammer candlestick formation which indicates indecisiveness between bulls and bears. The short-term formation is still on the bullish side but before any fresh breakout, the market may consolidate within the range of 17350 to 17575. However, 17350 would be the trend decider level and if the index slips below the same, the uptrend would be vulnerable.
Prashant Tapse, Vice President (Research), Mehta Equities, said, "The positive baton from last two trading sessions’ passed on to today’s trade but digging deeper Nifty wobbled and traded choppy. There was some sense of discomfort whenever Nifty swigged higher — a sense of discord was clearly seen amongst investors’ camp. Technically, the Omicron covid virus will lose its punch if Nifty scales above 17607 mark.
"Expect an up-and-down session in tomorrow’s trade with all bullish eyes on Nifty’s major hurdles at 17,607 mark. Please note, confirmation of strength only on any close above 17,607-mark."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "After showing sharp upmove in the last couple of sessions, Nifty shifted into a consolidation on Thursday and closed the day higher by 47 points. Nifty opened today with an upside gap of 55 points and failed to sustain the opening gains in the early part of the session and declined from the highs. A smart upside recovery has emerged from the day's low of 17,379 levels and the market moved up in the mid to later part amidst a range movement. The opening upside gap has been filled completely.
"A small negative candle was formed on the daily chart with long lower shadow. Technically, this indicates a formation of long legged doji type candle pattern. Normally, a formation of doji after a reasonable upmove and at the crucial resistances calls for downward correction from the highs. Having displayed a strength in the current upside bounce, the chances of minor downward correction or consolidation is likely in the coming session."
