BSE Sensex and Nifty 50 ended a 3-day losing streak on Thursday, the day of monthly expiry of the July F&O series, as global markets gained after US Federal Reserve Chair Jerome Powell kept interest rates unchanged. BSE Sensex gained 209 points or 0.40 per cent to end at 52,653, while NSE’s Nifty 50 jumped nearly half a per cent or 69 points to finish at 15,778. The top Sensex performer was Tata Steel stock which gained 7 per cent, while Maruti Suzuki fell the most, down 2.2 per cent. Broader markets performed in line with equity benchmarks. BSE Midcap index was up 0.4 per cent and BSE SmallCap nearly one per cent. India VIX, the volatility index, fell 5.45 per cent to 12.95 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the monthly F&O expiry day, the market witnessed a smart pullback rally, although the July series has been volatile with a momentum of nearly 450 points. While the sectoral performance in the current month series was mixed with Realty and Metal indices gaining over 13 percent, Auto and Energy indices lost ground and shed nearly 6 percent. Technically, for the bulls, 20 day SMA or 15820/ 52700 would be the key resistance level for the market, while on the flip side, 50 day SMA or 15650/ 52200 could be the strong support zone. The texture of the chart suggests that trading below 20 day would increase further weakness, while on the other side uptrend wave could continue up to 15900/53200 if indices succeed to trade above 15820/ 52700 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities
Index managed to close a day on a positive note at 15778 with gains of half percent and formed a Doji candle pattern on the daily chart. The index has formed a good base near 15750-15650 zone holding above said levels one can expect bullish momentum to continue & any dip around mentioned support will be again buying opportunity and we may head towards upper band of the range which is 15950-16000 mark, immediate resistance is coming near 15800-15875 zone.
Jay Thakkar VP and Head of Equity Research at Marwadi Shares and Finance
The Nifty closed well in the positive territory as anticipated by us post yesterday closing also we had anticipated that the index will close within this range of 15700-15800 and it has happened as anticipated. The Index had formed a Hammer candlestick pattern in yesterday session which is a bullish reversal pattern, so till yesterday’s lows are not broken the overall short term bias remains positive. So, now till the lows of 15500 are held the index is expected to inch towards 15900-15950 levels from hereon. The immediate support is pegged at 15700 and 15800 is an immediate resistance. The banknifty also closed in the positive territory and its is likely to trade within this range of 34500-35000 levels. Only above 35000 one can expect it to inch towards 35500 levels on immediate basis. The PSU banking names did well today and we can expect some short covering in private sector banks for tomorrow.
Vinod Nair, Head of Research at Geojit Financial Services
Global markets were on track to rebound after the panic sell-off surrounding Fed policy and Chinese tech crackdown cooled off. Despite the hawkish commentary from Fed, it did not signal a rush to taper the stimulus measure. China’s attempt to calm investor’s nerves also helped the market to take a breather. Meanwhile, metal stocks were sparked by the huge infrastructure fiscal package finalized in the US, in anticipation of high demand.
Sumeet Bagadia, Executive Director, Choice Broking
On the technical front, the index has been trading in higher highs and lower lows formation and taken support at lower Bollinger Band formation & 50-days SMA, which suggests a bounce back in the upcoming session. However, the Nifty index is struggling in a range of 15700-15900 and either side breakout will decide the further direction. At present, Nifty is finding resistance around 15960 levels while on the downside, support is intact at 15600 levels.