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Stock market
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Benchmark Indices closed marginally lower with Sensex closing at 53140.06 (-0.04 percent) and Nifty closing at 15923.40 (-0.01 percent). Some buying interest was seen in pharma, metal and realty sectors-- all these sectors have closed over 1 percent while selling pressure is seen in selected IT stocks with Nifty IT closing 1percent lower today.

Mohit Nigam, Head-PMS, Hem Securities said, "Broking company stocks were in limelight today with Angel Broking closing with a gain of 20 percent after strong numbers and Motilal Oswal Financial Services gained 10 percent. Cyient Ltd jumped 12 percent after posting robust Q1 numbers. Nifty 50 has held the 15,900 levels. sustaining above these levels may extend the rally to 16,200 while 15,600 remains a crucial support on the downside.

Nifty traded in a small range today--a low of 15,882.6 and a high of 15,962.25 and closed around yesterday’s close. Gaurav Udani, CEO & Founder, ThincRedBlu securities, said "BankNifty showed marginal weakness today. It corrected from highs of 36,000 to 35,700. As long as it manages to stay above 35,400 the trend remains intact and traders can look for targets of 36,500 and 37,000."

Sumeet Bagadia, Executive Director, Choice Broking, said, "Technically, the Nifty index has given prior resistance breakout and is showing good strength on the chart, which indicates a bullish presence for the coming session. Moreover, an indicator MACD & Stochastic is showing positive crossover, which points out the further upward trend. On four hourly charts, the index has given a breakout of the Symmetrical Triangle pattern, which suggests bullish movement for the next trading session."

What to expect week ahead

Nifty has found it difficult to breach 16000. Sectoral rotation could continue while select stocks could attract buying based on news and developments, said Deepak Jasani, Head-Retail Research, HDFC Securities. "On a weekly basis, Nifty has ended with a 1.49 percent gain after two weeks of losses. The coming week will witness more Q1 results (key among them being ACC, HCL Tech, Asian Paints, Bajaj Finance, Bajaj Auto, HUL, JSW Steel, ICICI Bank, ITC) and the stocks could react to these announcements. The indices could continue to edge upwards in the coming week which is a truncated week with a holiday on Wednesday. Retail investors could do a bit of reshuffling from the smallcaps into mid and largecaps."

In the coming week, based on its technical formation, the Nifty has scope to move towards 16,100 without much efforts. However, for that, support from banks and the FMCG sector will hold key. We feel the technology sector has delivered its best and now it's the turn of the FMCG sector to support the market," said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. He said, the strategy should be to buy if Nifty corrects to 15,900/15,850 without hitting the levels of 16,100. Traders should keep a final stop loss at 15,750 for the same. On the higher side, 16,000, 16,100 and 16,150 would be resistance levels. It is advisable to reduce long positions between 16,050/16,150 levels.

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Free Press Journal