The index which was expected to hit fresh highs before June expiry could languish around support levels unless bulls push Nifty50 beyond 9,700-9,709.
Experts expect the market to correct in near term, which may be healthy correction but not deep one.
The best way to profit from the variation in volatility is by employing options strategies.
A bearish candle after a shooting star formation has bearish implication and investors should tread with caution in the coming week.
In the near-term, we have a cautious view on the broad PSU banks.
Balkrishna Industries, Polson, Shivalik Rasayan, Teamlease Services, and Seya Industries, among others reached their all-time high marks.
The BSE Midcap index lost 1.2 percent and Smallcap index fell 1.5 percent as about three shares declined for every share rising on the exchange.
Malaysia-based Integrated Healthcare Holdings (IHH) reportedly has pulled out of controlling stake purchase talks from Fortis Healthcare, Malar Hospitals and SRL Diagnostics.
Brokerage house tracking the sector flagged concerns on the outlook as well as the recovery prospects.
Polson, Himadri Specialty Chemicals, Cox & Kings, Aditya Birla Money, Aditya Birla Nuvo and Balkrishna Industries, among others, were among the list of such stocks.
Helios Cap’s founder and fund manager believes that June has been a good month so far. He also keeps an eye on the fund flows by investors as they cannot be completely relied on yet.
Laurence Balanco of CLSA said recent divergence suggests the market is due a pause/correction in the short term.
Fresh momentum is possible only above 9,710 and on the downside a move below 9,560 would lead to a breakdown from recent consolidation.
Nifty fell below 9600 level and the Midcap lost over a percent on profit booking ahead of long weekend.
Nifty to open down up by 3 points at 9629 against yesterday's close of 9631.05 as per SGX Nifty, says a report by Dynamic Levels.
Trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 2.5 points at the opening bell, says Maximus Securities.
Tata Motors and BHEL, among others, are being tracked by analysts today.
Nifty is likely to open flat on the back of mixed global cues. Sell Nifty in range of 9665-9675 for targets of 9615-9595, stop loss: 9695, says a report by ICICIdirect.
There are only three trends for trading. From 10.40 am onwards, Nifty may go down, step by step. Hence, enter-exit accordingly, says Ganesha.
According to Technical Analyst Prakash Gaba of prakashgaba.com, support for Nifty is placed at 9620-9560 and the resistance is at 9724 while on the other hand Bank Nifty has support at 23230 and resistance at 23715.
It's critical for Nifty to sustain above 9,700 for bullish momentum to continue. A break below 9,580 could bring bears back.
A Shooting Star is a bearish reversal pattern and is formed after a rising price environment.
The broader markets underperformed benchmarks, with the BSE Midcap and Smallcap indices falling 0.6 percent each.
As the market moved to new milestone, 99 stocks touched 52-week highs and amongst them, 35 stocks traded at fresh record highs.
The expert believes that there is no valuation comfort in most businesses and going forward, the market breadth will collapse and individual stocks will be in focus.