The Sensex was down 215.12 points or 0.39 percent at 54,277.72, and the Nifty was down 56.40 points or 0.35 percent at 16238.20. About 1728 shares have advanced, 1400 shares declined, and 120 shares are unchanged.
After a flat opening, the nifty index traded range-bound for the day on the back of profit booking and settled at 16238.20 levels with a marginal loss of 0.35 percent while Banknifty ended at 35809.25 levels. The sectoral indices were mixed while buying interest was seen in Nifty Metal, Auto and IT index, whereas Nifty Infra, Pharma, and Commodities witnessed some selling pressure. On the other hand, Nifty Smallcap and Midcap indexes climbed 0.3 percent each.
Sachin Gupta, AVP-Research, Choice Broking said, “Technically, the benchmark index is trading in a bullish trend with higher highs and higher lows formation. In the recent candle, it has formed a Bearish Candlestick at the top of the trend, which indicates some correction in the index. Moreover, the Nifty50 index also slipped below the key level of 16,300 and Upper Bollinger Band formation. A momentum indicator RSI is hovering near the overbought zone. However, MACD & Stochastic is still showing further strength with positive crossover. At present, the nifty index has resistance at 16,350 levels while support comes at 16,100 levels.
The Nifty traded in a very small range of around 110 points, said Gaurav Udani, CEO & Founder, ThincRedBlu Securities. After its recent upmove Nifty has been consolidating since the last two trading sessions. "Today Nifty made an inside bar, which means it traded inside yesterday's high and low. The trend in Nifty remains bullish. It has strong supports at 16200, 16,150 and 15950 levels. Nifty may test 16,400 and 16,450 once it crosses its resistance of 16350".
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the Nifty seems to have started consolidation or minor downward correction from the highs, as anticipated and this consolidation movement is likely to extend towards early part of next week. "The important lower supports to be watched for next week around 16200-16100 levels and that is going to be a buy on dips opportunity. We expect sharp upside bounce from the dips by mid to later part of next week. On a decisive move above 16,350, Nifty may head towards 16,500 levels."
Technically, on weekly charts, the Nifty has formed a strong breakout formation, which indicates further uptrend from current levels. "We are of the view that the medium-term trend is bullish and buying on dips and selling on rallies would be the ideal strategy for the positional traders. The 16150-16050 level would be the strong support zone for the index. Trading above the same, the uptrend wave is likely to continue till 16400-16550 levels. Below 16050, breakout traders may prefer to exit from trading in long positions," said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd.
