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Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile for yet another day and ended almost unchanged, in continuation to the recent consolidation phase. The benchmark hovered range-bound in the first half however sharp swings in index majors in the latter half kept the traders on their toes.
We expect choppiness to continue in the index on Thursday as well due to the scheduled weekly expiry. Nifty has been hovering within the 17,250-17,400 zone and either side break would trigger the next directional move. Apart from the global markets, traders should keep a close watch on the banking pack for cues.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The present short term consolidation movement is expected to end soon and that could open a decisive upside bounce from the lows in the next 1-2 sessions. The confirmation of higher bottom is likely to pull Nifty towards 17,550-17,600 levels by next week. Immediate support is placed at 17,250 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty made a lower low compared to the previous two sessions but closed flat to mildly higher. This means sell-offs are being bought into. Also, the advance decline ratio improved to much above 1:1 denoting some return of confidence by the participants. 17,254-17,437 could be the trading band for the Nifty over the next few sessions.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Benchmark Nifty witnessed selling pressure near 17,400 resistance level, but once again found support near 17,250 and recovered quickly to pare losses which is broadly positive for the market. On charts, the index has formed a double top formation, while at the same time it is consistently taking support near 17,250-17,280 levels. The texture of the chart suggests range bound activity may continue in the near future. For the day traders, 17,280 would be the key level to watch out for, and if the index rises above the same, the uptrend formation could continue up to 17,400-17,475 levels. On the flip side, dismissal of 17,280 could trigger one more leg of correction up to 17,250-17,200 levels.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
The rupee saw a follow through on the way up just ahead of noon fix, as risk-off sentiments prevailed in equity markets on the back of news of a probable default by the second-largest property developer in China, Evergrande. Corporate outflows were noted on the back of dividend payments. However, dollar selling from exporters and FPIs capped the advance and pushed the pair from 73.70 to 73.60 at the close of the spot. Bias remains of a range between 73.00 and 74 on spot.
Rupee At Close | The Indian rupee fell for the third straight session to end 18 paise lower at 73.60 against the US dollar, tracking a strong American currency in the overseas market and muted trend in domestic equities. The local currency opened at 73.48 and dropped to a low of 73.70 in the day trade.
Rahul Sharma, Co-Founder, Equity99
The market is further expected to consolidate for some days. We expect some momentum in Mid & Small Caps. Expect the rally in Banking stocks to further continue.
On small duration charts, recovery has been seen from today’s low of 17,254 but at closing, we can see another small red candle for the third session of this week, the market is bound to remain in a consolidation range in the last session tomorrow, Nifty has strong support at 17,300 followed by 17,225-17,150 on the downside & hurdle is placed at 17,425-17500 levels on the upside. The uptrend is still intact as can see super trends on the bullish side only.
Bank Nifty had a very strong momentum & during the day we have seen good momentum in the entire space of banking and financials along with PSU in play, Now Nifty bank has major support at 36,600 followed by 36,450 – 36,300 on the downside & similarly hurdle on the upside is placed at 36,900-37100 levels.
Aashish Somaiyaa, Chief Executive Officer, White Oak Capital
A granular look at the data of equity and balanced/balanced advantage category of schemes suggests that the gross flow, the redemption and the net flow for the months of July and August remains to be at the same elevated level. But there is significant shrinkage in the net flow for the equity category and a corresponding bump up in net inflow of the balanced advantage category. This leads one to believe that on aggregate industry level large balanced advantage NFO has garnered a lot of traction by way of switches from equity to balanced advantage category. From a retail investors’ perspective in the short term, it may not be a bad development given elevated market levels and generally lower risk perception of balanced advantage funds.
Manish Shah, Founder, Niftytriggers.com
Nifty saw a sharp bounce from the lows as the Nifty attracted buyers towards fag end of the day's close. This is the second day when we are seeing this tendency of the market to revert from the lows of the day. This means that there is latent buying on declines. Three-day range bound movement means that Nifty is catching its breath after a strong rally. Usually this type of pattern resolve as continuation patterns.
Nifty is in a strong trend as MACD continues to be bullish and RSI shows a strong momentum as it remains elevated above 60 levels. ADX also displays a strong momentum.
Tomorrow is the weekly expiry and if Nifty manages to break past 17,450 expect a strong push towards 17,720-17,820 in the next couple of days. The momentum is decidedly up and rising. Avoid selling in anticipation of a downward move. This market is a buy on the decline. Any fall in Nifty up to 17,150-17,200 will be buying opportunity.
Binod Modi, Head Strategy at Reliance Securities
Domestic bourses witnessed modest contraction today mainly led by profit booking in IT and Auto stocks. Further, weak cues from global equities also weighed on investors’ sentiment.
The market appears to be a bit fatigued after a sharp rebound in recent weeks. However, we continue to believe that high-frequency key economic indicators for Aug’21 in the form of GST collection, railway freight, auto sales volume despite semiconductor issues, power consumption, import-export data and fuel volumes indicate a sustained economic recovery on YoY comparison.
While concerns over global growth due to the recent rise in delta variant Coronavirus cases in different parts of the world continues to persist, we believe that the underlying strength of the domestic market remains intact. In our view, festive demand, recovery in rural demand and COVID-19 positivity rates will be in focus in the near term. We note higher government’s capex and revival in industrials’ capex should aid economic recovery. However, a liquidity-driven market may take a backseat in 2022 and investors must start focusing on the quality aspect of companies, in our view.
S Hariharan, Head - Sales Trading, Emkay Global Financial Services
There are a number of developed market central bank meetings scheduled this week, which would provide greater insight into plans for tapering of asset purchases, which in turn would have implications for currency markets as well as risk assets. As a result, we have seen a trend of increase in long stock futures positioning by FIIs start to come down over the last 3 sessions. Since mid & small-cap indices are trading close to resistance levels despite the Nifty making new highs, overall market sentiment remains cautious, and the market advance is still dominated by a handful of stocks. Cement and PSU indices appear to have the highest relative strength while Autos are the weakest sector in the market overall.
Market At Close | Here are the highlights of today's trading session
-Sensex & Nifty Close With Minor Cuts; Reliance & IT Top Losers
-Broader Markets Outperform Benchmarks; Market Breadth Favours Advances
-Kotak & HDFC Bank Lift Nifty Bank With The Leading Index Rising Nearly 1%
-Nifty Closes 9 Points Lower At 17,354 & Sensex 29 Points Lower At 58,250
-Nifty Bank Gains 299 Points To 36,768 & Midcap Index 151 Points To 29,256
-Kotak, HDFC Bank & ICICI Bank Top 3 Contributors To Nifty On The Upside
-Autos Under Pressure As The PLI Scheme Is Likely To Be Only For EVs
-SBI Life Falls Nearly 2% Despite Strong Performance In the Month Of August
-Bharti, Voda Idea Erases Gains As Relief Measure Not Taken Up In Cabinet Meet
-Indus Towers, IDFC First Bk & IndusInd Fall On ‘No Telecom Relief Measures’ Too
-IRCTC Falls 4% From Day’s High To Close With A Minor Gain Of 0.3%
-Info Edge Surges Over 8% On The Positive Note By Brokerages
-Auto PLI For EVs Helps Greaves Cotton Surges In The Last Hour Of Trade