The stock markets recovered all the day's losses and ended on a flat note. Sensex closed down 0.13 percent and the Nifty ended up 0.02 percent in a highly volatile day. The markets managed to hold psychologically important 14,500 levels in Nifty 50. Metals, FMCG and a few pharma stocks showed some buying interest in the market with the metal index up by 2 percent after a stellar rally last month and FMCG index up notched up by 1 percent.
Selling was seen in Banking and Energy stocks today. Titan, IndusInd Bank, Reliance and Axis Bank were top losers on the Nifty. It continues to be a buy on dips market. 14500 & 14200 are immediate supports for Nifty in the short term, said Mohit Nigam, Head, PMS, Hem Securities.
After a gap-down opening, the index showed some pullback and continued to trade into the range for the day. Finally, the Nifty index managed to close on a flat note with a marginal gain of 0.09 percent while Bank Nifty settled in red at 32465.75 levels with a loss of 316 points.
On the sectoral front, BSE SmallCap, FMCG and metals were in action while Oil and Gas, FMCG and banking were the losers for the day. Stock specific moves have been noticed in the market like Adani Ports, Bharti Steel, Tata Steel, HUL, Maruti, etc. While on the other hand, there was some weakness in Titan, IndusInd Bank, Axis Bank and Reliance, said Sumeet Bagadia, Executive Director, Choice Broking. Technically, the Nifty has closed near the Middle Bollinger Band and 21 days Simple Moving Averages, which could be an immediate hurdle for the index. Moreover, the index has indicated negative crossover on the daily chart, which suggests some weakness for the near term. At present, the Nifty index has a support at 14,400 levels while an upside resistance seems at 14,800 levels.
Srikant Chouhan, Executive Vice President, said, the market got the support of laggards of last few weeks, for e.g. Bharti Airtel, SBI Life, Asian Paints, and Adani Ports. To recover from the lower levels, the Bank-Nifty offered significant support to the market heavily. On Tuesday, 14,550/48,500 and 14,470/48,250 would be major supports for the market. On the higher side, 14,670/48,870 and 14,730/49,100 would be major hurdles. The ideal strategy should be to buy on dips and keep a final stop loss at 14400/48000 for trading long in the market. The Bank-Nifty has formed the bullish hammer formation and we would see the levels of 33,000 or 33,300 in the near-term. The level of 31,800 on the Bank Nifty would be a trend decider, " he added.