Nifty fizzled out and closed with a minor loss and barring oil & gas, FMCG and healthcare, all sectors ended in the red as the market gave up its early gains on the last day of the week, said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services, while commenting on the day’s action.
He expects markets to consolidate in a broader range and recommends investors to remain cautious as major banks around the world will announce their policy statements next week.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates Ltd.
Nifty started the day on a flat-to-positive note but was unable to sustain above Thursday’s high, resulting in profit booking. Ultimately, the index settled the day on a negative note at 25,357. The volatility index, INDIA VIX, cooled off by 4.79%, settling at 12.55, indicating a drop in market volatility.
Technically, the index formed a small red candle on the daily chart. However, it managed to close above the breakout level of 25,335 on a weekly basis, indicating strength. The 21-DEMA support is currently placed near 24,980. As long as the index holds above 24,980, a “buy on dips” strategy should be adopted. On the upside, the index could test 25,500 and 25,800 in the short term.
Rupak De, LKP Securities
The index remained range-bound throughout the day. On the higher end, it faced resistance at the rising trendline on the daily chart. On the lower time frames, the RSI has entered a bearish crossover, signaling an early indication of a potential bearish momentum reversal. In the near term, the trend may remain sideways. Support is observed at 25,150–25,200, while resistance is seen at 25,460.
Jatin Gedia, Sharekhan by BNP Paribas
Nifty opened on a positive note and consolidated during the day to close marginally in the red down by 32 points. On the daily charts we can observe that after the sharp upward move in the previous trading session Nifty has consolidated. The price action is along expected lines and can continue over the next couple of trading sessions. The undertone is bullish, and it is likely to resume its upward move once the consolidation phase is complete. The upside is likely towards 25,500 – 25,700. Support is placed in the zone of 25,200 – 25,150.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)