The benchmark indices ended in a green note after a negative opening, after four days of losing streak. Nifty made an intraday low at 17,216.10 level but bounced and showed strength at intraday and closed the session at 17,503.35 levels with a gain of 86.80 points. Bank Nifty closed the session at 37,272.80 levels with a moderate gain of 144 points.
At close, the Sensex was up 198.44 points or 0.34 percent at 58,664.33. The broader Nifty was up 86.80 points or 0.50 percent at 17,503.30. About 2346 shares have advanced, 829 shares declined, and 153 shares are unchanged.
Major gainers on the Nifty on Tuesday were JSW Steel, Coal India, Power Grid Corp, NTPC and Tata Steel while IndusInd Bank, Asian Paints, Infosys, Bajaj Auto and Wipro were the major losers.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities said, "Nifty gave a recovery of over 300 points after making a low of 17,211. It closed at 17,490, up by 80 points. Nifty is currently in a short-term down trend and traders are suggested to exit longs in all upside rallies. Nifty has resistance in 17,600-17,700 range. A close above 17,850 with higher than average volumes will be the bullish confirmation to initiate new longs."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Buying in late trade helped the market to recover from intraday volatile session. Nifty found support near 17,200 and reversed sharply. The short term formation is still on the weaker side, but due to the extremely oversold situation the market registered a technical bounce back. It has also formed a bullish candle, indicating further upside from current levels. For day traders, 17,400 would be the key level to watch out for. Above the same, a pullback rally can continue up to 17,600-17,650 levels. On the flip side, below 17,400, there is a strong possibility of one more leg of correction till 17,330-17,280."
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the Index has taken support from 89 DMA, which suggests a bounce back in the counter. On an hourly chart, the Index has confirmed a Hammer kind of candle which further adds strength to the upside. Moreover, an Hourly Momentum indicator MACD and Stochastic were trading with a positive crossover which suggests bullish movement is intact. At present, the Nifty has immediate support at 17,200 while resistance comes at 17,600 levels, crossing aboNifty has support at 36,300 levels while resistance at 38,000 levels."
Mohit Nigam, Head - PMS, Hem Securities, said, "Benchmark indices witnessed highly volatile session on November 23 with Nifty closing above 17,500 on positive note. The Sensex was up 198.44 points (0.34 percent) at 58,664.33. The Nifty was up 86.80 points (0.50 percent) at 17,503.30. On technical front, Immediate support and resistance in Nifty 50 is 17200 and 17,650 respectively. For Sensex, the support and resistance is 36,700 and 37,500 respectively."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "Nifty bounced well after making a low of 17,216. Advance decline ratio also went deeply in the positive. 17,613 could be the next resistance for the Nifty while 17,280 could be a support. The broader market having fallen sharply could bounce up longer than the Nifty."
Amar Ambani, Head – Institutional Equities, Yes Securities, said, "Structurally, our view remains bullish on the Indian equities. However, in the near-term, there are signs of some exhaustion in the equity rally after the ferocious rise seen over the past few months. Sector rotation has happened and mid-caps have already massively rallied. FII inflows have also paused after hefty buying in August and September. This can be attributed to expectations of faster than expected normalisation of the Fed’s monetary policy. Recent FII outflows can also be seen as a year-end phenomenon, but the flows are expected to return next year.
"There is pressure on a few heavyweights like Reliance, which is dragging the benchmark index down. Having said that, the correction which we have seen in Nifty and Sensex is of a lower magnitude when compared with the base levels during the past. So, the hue and cry over the ongoing correction seem to be overblown. Nevertheless, the markets are certainly taking a pause and the correction could extend by another 5 percent. On the broader perspective, we reiterate our bullish stance, with our positive rationale very much in place. We see Nifty during 2022 at much higher levels than 2021.”
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