Dear Trader…
The Indian equity market started the day on a mild note amid mixed global cues, wherein the benchmark index seemed a bit nervous from the early trades and slipped into the negative terrain. However, the dip augured well for the bulls, and they made a modest recovery by the mid-session. But by the fag end, the correction triggered again resulting in a tentative closure with a mere loss of 0.05 percent and settled a tad above the 17000 mark.
We allude to the previous commentary on the benchmark index entering the cluster of key moving averages, i.e. 89-day EMA and 200-day SMA. Technically, the support of 17000-16800 shows their resilience as bulls retaliate from the same during intraday declines. As long as the mentioned zone is decisively held back by the bulls, one need not worry about further correction. Also, since the markets are extremely oversold, we advocate reducing short positions.
Nifty futures opened at 17099.85 points against the previous close of 17028.75 and opened at a low of 16946.00 points. Nifty Future closed with an average movement of 228.90 points and a rise of around 26.25 points and 17055.00 points...!!
On the NSE, the midcap 100 index will rise 0.16% and smallcap 100 index is closing rise 0.25%. Speaking of various sectoral indices, FMCG, IT, Media, Pharma stocks saw gains on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, October gold opened at Rs.49190, fell from a high of Rs.49499 points to a low of Rs.49082 with a rise of 280 points, a trend of around Rs.49430 and December Silver opened at Rs.55577, fell from a high of Rs.56177 points to a low of Rs.56305, with a rise of 749 points, a trend of around Rs.56101.
Meanwhile, the intraday hurdles are seen around 17100 – 17200. Only a sustainable move beyond 17200 would trigger a sharp short covering rally in the market. Until then, the broad range (16800 – 17200) continues with a lot of indecisive swings on both sides. Traders are advised to keep a close eye on global development as well. Any respite in oversold global peers would certainly uplift the overall market sentiments.
Markets may witness some consolidation or pause after the recent decline however mixed trends across sectors would continue to offer trading opportunities across the board. Besides, the beginning of the MPC meet and global cues would keep the volatility high. We feel it’s prudent to continue with the defensive pack for long trades until we see some stability.
Technically, the important key resistances are placed in Nifty future are at 17107 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17177 – 17202 levels. Immediate support is placed at 16888 – 16808 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
