The dialogue went by “Ise Liquid Oxygen Me Daal Do. Liquid Ise Jeene Nahi Dega, aur Oxygen Ise Marne Nahi Dega.” (Throw him into liquid oxygen. The liquid won’t let him live and the oxygen won’t let him die.)
The current market status is no different. The bulls are ensuring that it does not slip below current levels, while the bears are not letting it cross important barriers. Time and again over the course of the week, there have been constituents that have ensured that the Nifty continues to remain locked in a range.
Across Monday and Tuesday, while IT put its hand up, lending support to the Nifty, banks sulked. Banks sulked even on Wednesday, but recovered from the lows of the day, aiding in the index recovery.
But the prime contributor to the index recovery on Wednesday, turned out to be Reliance Industries, whose 50-plus-point contribution ensured that the Nifty ended in the green, despite a 200-point gap down at the start.
As the market moves into yet another weekly expiry session on Thursday, the range continues to remain the same for the Nifty. The index continues to find support between the 23,250 – 23,350 range, while 23,700 – 23,800 remains a barrier, where the 50-DMA is placed.
Another important aspect that remains a key monitorable is the currency moves and the bond yields, which crossed the 7.1% mark on Wednesday. The rupee too, continues to make new lows, and is closing in now on the mark of 97 against the US Dollar.
Thursday’s session will also see the market react to results from Ola Electric, Lenskart, Jubilant Foodworks, Sammaan Capital, Whirlpool, Apollo Hospitals, Bosch and others.
The penultimate trading session of the week will also see ITC, Aurobindo Pharma, LG Electronics, Bikaji Foods, Sun TV, VA Tech Wabag, Prestige Estates, GAIL, Engineers India, report their results.
Key Levels To Watch
“Going ahead, the immediate support for Nifty is placed in the 23500-23450 zone. Any sustainable move below this zone could result in Nifty extending its weakness towards 23300, followed by 23150 in the short term. On the upside, the immediate resistance for Nifty is placed in the 23800-23850 zone, which coincides with the 20-day EMA,” Sudeep Shah of SBI Securities said.
For the Nifty, the 20-Day Exponential Moving Average (DEMA) and the 50-DEMA are in a bearish crossover, while the momentum indicators are also in a bearish crossover, according to Rupak De of LKP Securities. He went on to add that the weak sentiments will continue in the market till the Nifty remains below the 23,800 mark. However, a decisive move above 23,800 can take the Nifty further higher, while panic selling could be triggered if the index moves decisively below 23,400, he added.
The Nifty Bank gained only for the second time in the last nine trading sessions. However, the bulls will be pleased with the fact that the index closed near the highest point of the day. The 52,750 – 53,000 zone continues to remain a key support point for the index, while 54,000 on the upside remains a major hurdle. Despite this recovery, the index has been making lower highs on the daily charts for four straight sessions.
“The overall setup suggests Nifty Bank is currently undergoing a consolidation phase before the next directional move. As long as the index sustains above 53,000, a range-bound buy-on-dips strategy near support zones may remain favourable for pullback targets towards 54,000 – 54,500, while a decisive break-down below 53,000 could again trigger fresh weakness towards 52,500 levels,” said Dhupesh Dhameja of SAMCO Securities.
