Mkts hovering in non-directional texture
Weak sentiment likely to continue below 62,700; Below the same, index could slip till 62,100-62,000; On the flip side, above 62,700, it could rally till 62,900-63,000
image for illustrative purpose
On the day of weekly expiry, the benchmark indices witnessed a narrow-range activity, BSE Sensex was down by 194 points. Among the sectors, Reality and Pharma indices rallied over one per cent, whereas private banks stocks witnessed profit booking at higher levels.
Technically, the index on daily charts has formed bearish candle on daily charts and it also formed lower top formation on intraday charts which is broadly negative.
“For the traders, as long as the index is trading below 62,700, the weak sentiment is likely to continue. Below the same, the Sensex could slip till 62,100-62,000,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, above 62,700 the index could rally till 62,900-63,000. The current market texture is non-directional, hence level-based trading would be the ideal strategy for the day traders.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Despite challenges in the global economies, the domestic market displayed better than estimated Q4 earnings growth, along with 7.2 per cent GDP growth in FY23, adding buoyancy to the market during the week. However, on Thursday the market closed with a marginal negative bias in which banks witnessed heavy profit booking. Investors turned cautious in anticipation of inflationary pressure in the US after raising the US debt ceiling. The US 10-year bond yield inched higher; the market is looking ahead to the trajectory of US interest rates to get more visibility.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities says, “The Bank Nifty index remained under the control of bears, as they maintained their grip on the market. Selling pressure was observed from the resistance zone around 44,200, suggesting that sellers were active at that level. If the index sustains below the level of 44,000, it could indicate further downside potential. In such a scenario, the index may witness a decline toward the support zone around 43,500-43,400. Concerns about a recession and potential interest rate hikes in western markets are impacting the domestic market but it is nevertheless maintaining the outperformance.”
