The benchmark indices closed at a high in a volatile market on November 29. Markets saw a roller coaster ride intra-day but eventually ended on the higher side. Investors are trading with caution, especially after reports of a rising threat of a new South African coronavirus variant.
After an early morning intraday selloff, Nifty found support near 16,780 and reversed sharply, but once again it failed to close above the 100 day SMA. At close, the Sensex was up 153.43 points or 0.27% percent at 57,260.58. The Nifty was up 27.50 points or 0.16 percent at 17,054.00. About 875 shares have advanced, 2337 shares declined, and 142 shares are unchanged.
On the sectoral front, the Nifty IT and financial services was contributing some gains, while the rest of the indices were trading in loss. Stocks like Kotak Bank, HCL Tech, HDFC Life, and TCS were the top gainers. BPCL, Adani Ports, Sun Pharma and ONGC were the top losers for the day.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, "Nifty gave a bounce back from its mid-term support level of 16,800. It closed at 17,045 , up by 18 points. Now 16,800 and 17,600 are the key levels for Nifty. A break in any direction will decide the short term trend for Nifty. Traders can use buy on dips strategy with a strict stoploss of 16,800."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "On daily and intraday charts, the index has maintained a lower top series formation which is broadly negative. However, on the intraday chart, the index is consistently taking support in the range of 16,950-16,970-levels. For day traders, Nifty has a support at 16,950, and above the same a pullback rally could lift the index up to 100 day SMA or 17,115. If the upmove continues, the index may rise up to 17,200. On the flip side, dismissal of 16,950 could possibly open one more correction leg up to 16,830-16,780 levels."
Sachin Gupta, AVP-Research, Choice Broking said, "On the technical chart, the Nifty index has formed a bearish candlestick and closed below the Lower Bollinger Band formation. The index has also settled below 50-days SMA, which indicates some weakness. Moreover, a momentum indicator Stochastic and MACD has witnessed negative crossovers, which point-out a weakness in the index. At present, the Nifty has support at 16,900/16,700 levels while resistance at 17,300 levels. On the other hand, Bank Nifty has support at 35300/34800 levels and resistance at 36,600/37,400 levels."
Mohit Nigam, Head - PMS, Hem Securities, said, "Strong selling pressure was seen in PSU Banks (Nifty PSU Bank -2.17 percent). Nifty IT closed in green at 0.89 percent higher. Top gainers were Kotak Mahindra Bank (2.82 percent) , HCL Tech (2.08 percent)) and top losers were BPCL (-2.49 percent)) , Sun Pharma (-2.12 percent). On the technical front 16,850 and 17,300 are immediate support and resistance levels for Nifty50 and for Bank Nifty immediate support and resistance levels are 35,500 and 36,500."
Prashant Tapse, Vice President (Research), Mehta Equities, said, "Amidst volatility, the positive takeaway was that bulls battled hard and held the ground. That said, caution continued to be the buzzword and on intraday strength traders were seen lightening their leveraged long positions. From a chartist standpoint, Nifty's support seen at 16,781 mark. Greed will come back to play only above Nifty 17,289 mark and euphoria will take centre stage only on any close above Nifty 17,481 mark. However, the ongoing pessimism indicates that the recent dramatic crash at Dalal Street is nowhere near over," Tapse said.
Deepak Jasani, Head of Retail Research, HDFC Securities said, "Nifty closed higher on November 29 after an early morning sell-off. On a day when the volumes on the NSE were higher than the recent average, IT, Consumer Durables and Telecom indices gained the most, while Realty, Power and Oil & Gas indices lost the most. Midcap index lost 0.93 percent while Smallcap index lost 1.9 percent," Jasani said.
