Markets moved in a narrow range with sharp swings in intraday volatility ahead of the monthly F&O expiration. Traders mostly preferred to remain cautious ahead of the release of the FOMC minutes and the Fed's comments that would set the trend in the near term. Benchmark indices ended slightly positive with the Nifty 50 up +0.13% and Sensex up +0.15% today on mixed global signals. Some buying was seen in Oil & Gas and PSU banks, while selling pressure was seen in Metals and IT stocks. To finish, the Sensex was up 91 points to 61,510 and the Nifty was up 23 points to 18267. Global factors such as China's lockdowns in several of its cities and their impact on the global economy would continue to weigh on market sentiment.
Overall, we believe
Indian markets are trading in a positive trend, supported by strong corporate
earnings, easing supply constraints, falling commodity prices and strong demand
across sectors. Investors should use any significant decline as a good
opportunity to buy into these markets. Technically, the Nifty has formed a
small bearish candle after the reversal pattern, which indicates indecisiveness
between bulls and bears. For traders 18250 would be the immediate support
level and above that the index could retest the 18300-18,400 level. On the downside,
a break away from 18250 could accelerate selling pressures towards
18200-18000 levels.
Resistance: 18300, 18400, 18500
Support: 18200, 18100, 18000
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