Stock indices closed lower on volatile trading on December 29. Markets moved within a narrow range due to lack of investor participation before year end. After posting gains in the past two sessions, the market saw selective profit-taking on metals and PSU stocks, which pushed benchmarks lower. Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, “The Nifty maintained a higher background formation, but after a strong rally, the index has now formed a formation of Hammer candlestick near the important resistance level indicating a strong possibility of near term weakness. “
At the close, the Sensex lost 90.99 points or 0.16% to 57,806.49. The Nifty lost 19.70 points or 0.11% to 17,213.60. About 1969 stocks rose, 1317 stocks fell and 96 stocks were unchanged. Bank Nifty closed the session at level 35045.40 with a loss of 138.40 points.
Sector-wise, Nifty Pharma and Auto extended their gains while metals and media were under pressure. Stocks like Eicher Motors, Bajaj Auto, Sun Pharma, Divis Lab were the main winners, while State Bank of India, ITC, Coal India, Tata Steel were the main laggards.
Chouhan said that in order to follow the trend of traders 17,200 would be the important level to watch, and above the same level the uptrend could continue up to 17,300-17,350 levels. However, if the index slips below 17,180, there is a strong possibility of a rapid intraday correction down to 17,140-17,100.
Palak Kothari, Research Associate, Choice Broking, said: “Technically the index has traded in a declining channel formation, the breach above the upper formation band may indicate a recovery to the rise in the counter. Additionally, the index traded above 21 & 50-HMA which suggests strength in the meter. However, a STOCHASTIC and MACD momentum indicator trading with a positive cross over the daily period. Right now the index has support at 17,000 levels while resistance reaches 17,300 levels, rising above the same may show levels 17,400 to 17,500. On the other hand, Bank Nifty has support at 34,500 levels and resistance at 35,500 levels. “
Mohit Nigam, Head – PMS, Hem Securities, said: “Large buys are seen in some pharmaceutical stocks, while some selling pressure is seen in metals stocks today. Bajaj Auto will invest 300 crores to strengthen the capacity of 5 lakhs of electric vehicles per year. the stock is up 3% today. Bajaj Auto can be a lucrative buy for investors as the stock price is currently very cheap. Strong buying interest was also seen in newly listed IPOs such as Latent View, Data Patterns, MapmyIndia, Supriya Lifesciences, etc. The company Aether Industries has filed an aDRHP for an IPO of Rs 1,000 crore.
“Technically, the overall structure looks positive for Nifty 50 as it manages to stay above the 17,200 level at the close. 17,000 and 17,400 are immediate support and resistance in Nifty. For Bank Nifty, 34,500 and 35,500 are immediate support and resistance. “
Devarsh Vakil, deputy director of retail research, HDFC Securities, said healthcare stocks were in demand today. The COVID-19 antiviral pill Molnupiravir gained approval from the Indian drug regulator on Tuesday and will now be manufactured by 13 Indian drug makers. The Nifty Healthcare Index rose 1.8 percent to 8,860.2 extending gains for the third consecutive session. The index rose 3.75% in three sessions.
“Nifty found resistance on the downward sloping trendline adjacent to previous highs on the daily chart. 50 day EMA also acted as an obstacle for the Nifty at 17,340. Nifty has strong support at odd levels of 17,050, derived from the rising trendline, adjacent to previous lows on the daily charts, ”Vakil added.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “The market appears to have positioned itself on crucial central resistance and is lacking the strength to overcome the obstacle. There is a greater possibility of a consolidation or downward correction in the next 2 sessions before showing a further upward rebound from the lows. Immediate support is placed at 17,100 levels. “
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, “Nifty saw bearish pressure towards the end of the trading session. The downside was that the recent uptrend was seen to fade as Omicron was seen hurting Dalal Street. Maharashtra Health If Mumbai’s positivity rate exceeds 5%, the minister said interest rate fears could also be partly blamed on interest rate fears. to the January 2022 series. The spotlight will remain on Omicron’s developments and President Biden’s spending pledges. The Nifty Bulls will only retake the throne above 17,389 obstacles. Also, the optimism could reverse and cause a nasty New Year’s hangover if Nifty slips below 16,833. “
(To receive our electronic paper daily on WhatsApp, please click here. We allow sharing of the PDF document on WhatsApp and other social media platforms.)
Posted on: Wednesday, December 29, 2021 3:45 p.m. IST