Indian stock markets closed flat today after hitting record highs in the last three sessions. In a choppy session, the Nifty 50 index ended 0.09% lower at 17,362, led by losses in realty and technology stocks. The benchmark S&P BSE Sensex closed 0.03% lower at 58,279. The rupee today fell by 32 paise to close at a one-week low of 73.42 against the US currency, reflecting losses in most Asian and emerging market currencies. Analysts said buying of the dollar by corporates and importers and greenback gains in overseas markets weighed on the rupee.
After giving such a huge rally in such a short period, Nifty is expected to remain in the range for a few days. Investors are advised to place strict stoploss on their positions,” said Rahul Sharma, Co-Founder, Equity99.
“Nifty has strong support at 17300 followed by 17225-17150 downside and hurdles upside at 17425-17500 levels.”
The Nifty IT index fell 1.31%, with Wipro and Infosys down 1%. Nifty Realty index fell 2.33%, Prestige Estates Projects broke five sessions of gains and closed 5.8% lower.
“After witnessing an 800-mark rally, Nifty is exhibiting a range-bound trend, which indicates that bulls may feel uncomfortable moving further near 17450. But technically, a short-term correction is possible only if the index fall below 17290. For the next few trading sessions, 17290 may act as a trend decisive level, above which we can expect another uptrend wave towards the level of 17450-17500. However, below this The trading of BSE may trigger a quick intraday correction till 17250-17210,” said Shrikant Chauhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd.
Shaping some of the losses in the markets were HDFC Ltd and telecom firm Bharti Airtel Ltd, both rising over 2% each.
“A proper downside candle has been formed on the daily chart with slight upper and lower shadows. This pattern indicates market volatility in a narrow range. This new trend is seen in the charts,” said Nagraj Shetty, Technical Research Analyst, HDFC Securities. Highs indicate market fatigue, but the overall chart setup is not warning of any significant trend reversals.
“The market has shifted into a consolidation mode with range-bound action. The current choppy movement with slight weakness may continue for the next 1 or 2 sessions and then show another round of upward move from the lower levels. Immediate support is placed at 17250 and significant overhead resistance is to be seen around 17500 level.
Ajit Mishra, VP-Research, Religare Broking Ltd. says that in the absence of any major events, global cues will continue to dictate the trend. “The signals are in favor of some consolidation or take profit so we recommend being extra careful in stock selection. On the benchmark front, Nifty has immediate support around the 17,200-17,250 zone.”
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