Closing Bell: Nifty manages to close above 9K amid volatility; IT, pharma under pressure, metals shine

Taking Stock: Sensex wipes out morning gains on COVID-19 worries, Nifty holds 9K

Bajaj Finance, TCS, Bajaj Finserv and Bharti Airtel were among the top Nifty losers.... Read More

The market is stuck in a dilemma. While domestic news flows are unfavorable, global markets are growing day by day. In such a situation the market keeps trading in a narrow trading range and Nifty is exactly behaving in the same manner. Technically, Nifty would turn weak below the level of 8900 and may fall heavily if it breaks the level of 8800. On the higher side, the level of 9180 would be a major hurdle for it.

Now the focus will shift to Bank Nifty, as it has formed the Narrow Range formation. Such type of formations invites greater volatility in the short term. Strong above 17750 and weak below 17100.

Technically, the Nifty seems to be in consolidation mode as it is now trading within the 8960-9180 trading range. Further directional cues are likely to emerge on a move beyond this range.

Traders are advised to look for stock specific buying opportunities and trade with a positive bias. On the higher side, 9200 remains the immediate hurdle and once this resistance in taken out, we can expect some momentum towards 9300-9350 in the near term.

It’s a short week and the focus would remain on the earnings announcements. We feel the upcoming derivatives expiry will keep the participants on their toes. We reiterate our cautious view and suggest keeping a close watch on the banking index for cues. Nifty should see a decisive break from the prevailing range of 9000-9200 for any directional move.

The formation of hammer type candle pattern on the weekly chart signal that any minor weakness from here could be a buying opportunity in the short term. Immediate supports to be watched at 8950. A sustainable move above 9150-9180 is likely to lift Nifty towards 9500 levels in the short span of time.

After opening up by more than 1%, benchmark indices pared gains to close flat, with a negative bias. However, global market cues were positive, on the back of additional stimulus measures and slow reopening of economies globally. The unabated rise of infections continues in India, which throws up further uncertainties with regards to extension of lockdown measures.

Globally, commodity markets were strong and the metal index outperformed in today’s trade. This was driven partly due to measures announced to support the Chinese economy, which accounts for a major portion of the global demand for metals.

The way the Index gave a downside movement during the trading session, it seems that we might see a further downside movement in the Index in upcoming trading sessions. At present level, the Index has strong support at 8950-8800 while upside resistance comes at 9350 level.

The markets ended on a sideways note once again - it was neither successful in crossing 9175, nor did it break 8950. With expiry just around the corner, the trading range has become narrow which is making it difficult for traders to take a position in a particular direction.

: Benchmark indices erased all the day's gains and ended marginally lower with Nifty able to hold above 9,000 level.

At close, the Sensex was down 63.29 points or 0.21% at 30609.30, and the Nifty was down 10.20 points or 0.11% at 9029.05. About 1211 shares have advanced, 1109 shares declined, and 175 shares are unchanged.

Eicher Motors, JSW Steel, Titan Company, UltraTech Cement and Shree Cements were among top gainers on the Nifty, while losers included Bharti Airtel, Bajaj Finserv, Bajaj Finance, TCS and Sun Pharma.

Among sectors, IT and pharma witnessed selling pressure, while metal index rose over 2.5 percent followed by auto, bank and FMCG. BSE Midcap and Smallcap indices ended with a gain of 0.6-1.2 percent.

The company has reported 25.5 percent YoY fall in its consolidated net profit at Rs 24.9 crore versus Rs 33.4 crore and revenue was down 19.5% at Rs 296.3 crore versus Rs 368.2 crore, reported CNBC-TV18.

Maruti Suzuki India has partnered with ICICI Bank to offer customised auto retail financing solutions across the country.

Reliance Power Netherlands BV, a wholly owned subsidiary of Reliance Power, has won a lawsuit in the Central Jakarta district court in Indonesia, challenging the validity of Singapore arbitration award favouring Reliance Power.