Indian markets ended in the green today in tandem with a similar recovery in other markets as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover At close, Sensex gained 153 points to end at 57260; Nifty rose 14 points to 17040. Domestic indices trimmed its early losses to trade modestly higher backed by IT and healthcare stocks, amid lingering worries over the emergence of the new covid variant. Global markets traded mixed as investors were torn between buying on dips and the uncertainties over the impact of Omicron on economic recovery. However, the global market has factored well the near-term uncertainty limiting further downside. On the domestic front, the telecom sector was in focus as all sector majors reported a rate hike, signaling an end to the low tariff regime.
We expect choppiness to
remain high citing the prevailing uncertainty around the new COVID variant.
Besides, on the domestic front, macroeconomic data like GDP numbers, core
sector data and auto sales figures will further add to the volatility. We
reiterate our cautious stance and suggest preferring hedged positions. Nifty
closed the Monday at 17054 with minimal gains and formed a Doji candle pattern
on the daily chart which represents indecision in the markets. Immediate
support for Nifty is coming near 16950-16850 zone and on the higher side index
has stiff hurdle around 17175-17250 zone, also one can look for trimming their
longs around mentioned resistance zone. Overall strength will come only above 17300
zone & until trading below 17300 levels, we may see sell on rise structure
intact.
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Resistance: 17175, 17250, 17300
Support: 16950, 16850, 16750
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