The stock markets were volatile and non-directional intra-day, but Nifty found support near 18,000, which helped indices to reverse losses.
The Sensex was up 145.43 points or 0.24 percent at 60967.05. The broader Nifty was up 10.50 points or 0.06% at 18125.40. About 971 shares have advanced, 2276 shares declined, and 174 shares are unchanged.
Among major Nifty gainers today were ICICI Bank, Axis Bank, ONGC, JSW Steel and Dr Reddy’s Laboratories. BPCL, SBI Life Insurance, Bajaj Finserv, Bajaj Auto and HCL Technologies were among the losers.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Technically, post short-term correction, the index consistently took support between 18,000-18,050 or near 20-day SMA.
"On intraday charts, the index has maintained a lower top formation which is broadly negative for the Nifty. We are of the view that the short term structure is weak but a quick pullback rally is not ruled out, if the index succeeds to trade 18,000-18,050 levels. Once again, 18,050 could act as a sacrosanct support level for the day traders, and above the same we can expect an extension of a pull back rally up to 18250-18310. On the flip side, below 18,050 or below 20 day SMA, the uptrend would be vulnerable."
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Since the last few trading sessions Nifty has been making lower Highs and lower lows , which is a bearish sign. Nifty closed flat at 18,125 after taking resistance at 18,240. Nifty has support in 17,980 - 18,020 range and resistance in 18,220-18,240 range. Traders are advised to be cautious in long positions and maintain strict stoploss."
Mohit Nigam, Head - PMS, Hem Securities, said, "Benchmark indices ended the day’s session on a firm footing after a volatile start and strong buying interest witnessed in banking Stocks with Nifty bank closed 2.15 percent up and Nifty 50 ended on a flat note with 0.06 percent up. This outperformance of Bank Nifty is justified by the bank results so far and bullish trend may continue in future. The BSE Sensex index was up by 145 points and closed 0.24 percent up with eight of 30 stocks closing in red. Volatility Gauge India VIX jumped by 0.34 percent. Strong Selling Interest was seen in Nifty IT with Nifty IT down by 1.10 percent.
"Oil prices extended gains to multi-year highs on tight supply. A firm start for the European markets also helped the market sentiments with European stocks inch higher as commodity prices strengthened. In the 50-share pack Nifty, ICICI Bank was the biggest gainer, up 10.85 per cent," Nigam added.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "The short-term trend of Nifty is range-bound with minor positive bias. Having slowed down on downside momentum and placed at the crucial supports, one may expect chances of upside bounce from the lower levels. Any failure to sustain the upside bounce or a decisive move below 17,950-17,900 levels could extend sharp weakness for the short term. A confirmation of upside reversal by positive close could open an upside bounce in the market."
Deepak Jasani, Head-Retail Research, HDFC Securities said, "The Nifty recovered well from the morning weakness. In the process it made a lower intra day low compared to the previous session but closed higher. It turned up from the low of 17.968 – close to the support level of 17.948. Selling pressure in some index heavyweights is counterbalanced by buying in some other sectors. However the broader market continues to flounder and the advance decline ratio is deeply in the negative. Nifty has a chance to stabilize and bounce up though a broader market recovery seems a couple of days away."
