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Last Updated : Sep 15, 2020 05:54 PM IST | Source: Moneycontrol.com

After The Bell: Nifty back above 11,500; what investors should do on Wednesday

Experts are of the view that on the upside 11550-11600 are likely to act as crucial resistance levels while on the downside 11450 is likely to act as a support.

Indian market rallied on September 15 but the action was mostly seen in the small & midcap space. The Nifty negated the formation of bearish setup formed on Monday which suggests that bulls are not ready to give up yet.

Let’s look at the final tally on D-Street on Tuesday – the S&P BSE Sensex was up 287 points to 39044 while the Nifty50 closed 81 points higher at 11,521

Sectorally, the action was seen in telecom, healthcare, banks, and financial stocks while profit-taking was visible in realty space.

Close

In the last couple of weeks, banking stock came under selling pressure. The sharp intraday recover rally, in the last hour of trade, indicates a pullback rally likely to continue in the short run.

Experts are of the view that on the upside 11550-11600 are likely to act as crucial resistance levels while on the downside 11450 is likely to act as a support.

“Technically, on daily charts, the index has formed a strong Bar Reversal candle followed by inside body candle formation which clearly suggests non-directional activity. Currently, the index trading near important retracement level and the texture of the index advocates narrow range activity likely to continue in the next few trading sessions,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities told Moneycontrol.

“For the next few trading sessions, 11450 should be the sacrosanct level, we can expect further uptrend up to 11550-11620. As long as it trades above Rs.11450 levels. However, trade below the said levels would push traders to exit out from their trading long positions,” he said.

We have collated the views of experts on what investors should do on September 16:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The Nifty is moving in a broader range and has witnessed selling pressure consistently at the highs. It is going to be crucial to watch the market behavior at the hurdle of 11600.

As long as the swing high of 31st Aug (11794-high of bearish engulfing as per daily and weekly chart) is protected, the broad-based upside momentum could be muted in the near term.

The short-term trend of Nifty is range-bound with positive bias. Renewed buying enthusiasm could only occur above 11600 and that is likely to pull the market towards 11800 levels in a quick period of time. Important lower supports to be watched at 11380 and a breach below this support could trigger more weakness in the near term.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas

The Nifty had formed a couple of bearish candlestick & bar patterns on September 14. However, there was no follow-through selling on September 15. On the contrary, the bulls managed to take support near the key hourly MAs as well as near 20 DMA.

The lower end of a reverse rising channel also offered support to the bulls. Thus the Nifty is once again heading towards the 61.8% retracement of the decline from 11794 to 11185, which is at 11561.

So going ahead, 11561 - 11585 will be the key area to keep a tab on. On the flip side, 11440-11400 becomes a key near term support zone.

Ajit Mishra, VP - Research, Religare Broking Ltd

We are seeing noticeable buying across the board during this consolidation phase and it’s indeed a positive sign.

However, the participation of the banking pack is critical for any directional move in the index. Consider the prevailing scenario, we suggest keeping a close watch on the outcome of the US Fed meet for cues.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Sep 15, 2020 05:54 pm
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