Closing Bell: Sensex up 123 points, Nifty above 18,330; M&M, IndusInd, Axis Bank top gainers

On Friday, the Nifty index began the trading session with a weak note and experienced volatility throughout the day. However, an important technical indicator, the Relative Strength Index (RSI), showed a bullish crossover, indicating potential upward momentum in the market.

Closing above the significant level of 18200, the Nifty sustained its position, which is considered a positive sign for the market. As long as the index remains above this level, the overall trend is expected to remain positive.

Looking ahead, it is important to keep an eye on the resistance level at 18400. If the Nifty manages to surpass this level, it could further reinforce the positive trend. However, if the index falls below the support at 18200, it may signal a potential weakness in sentiment and raise concerns about the ongoing bullish outlook

After showing weakness from the highs on Thursday, Nifty shifted into volatility with a positive bias on Friday and closed the day higher by 17 points. After opening with a negative note, the market slipped into weakness soon after the opening. It later shifted into an upside recovery from the intraday lows that lasted till the end.

A small positive candle was formed on the daily chart with minor upper and lower shadows. This pattern reflects on going range-bound action in the market within high-low range of 18400-18200 levels. Though Nifty placed at the hurdle of 18300 levels, the market is not gaining any momentum to show an upside breakout of the resistance. At the same time, there is lack of sharp weakness or reversal pattern from near the hurdle.

Nifty as per the weekly chart formed a long bull candle with a minor upper shadow. This pattern has negated the bearish candlestick pattern of last week and closed above it at 18260 levels.

Conclusion: The short-term trend of Nifty continues to be range bound with positive bias. A decisive move above 18400 levels could open the next upside of around 18600-18700 levels in the near term. Any weakness from here could find support around 18180-18200 levels.

A slew of weak economic data points from the US and China hinting towards a slower pace of economic growth disturbed the mood of the Asian market. The risk of a recession in the US escalated as US jobless claims rose to their highest level since October 2021 while producer prices rose at a modest pace. Consequently, US Treasury yields reacted, indicating a potential halt in central bank rate hikes. The domestic market recovered in the second half as investors back home awaited the release of Indian inflation data that is expected to cool down below 5%

Markets remained volatile for yet another session and ended almost on a flat note. The tone was negative in the first hour however buying in index majors, especially from banking, financials and auto space helped the index to trim losses. Consequently, the Nifty index settled at 18,314.80 levels. Meanwhile, the profit taking in broader indices resulted in negative market breadth.

We expect further consolidation in the index citing mixed signals from the global front. However, there will be no shortage of trading opportunities, thanks to the prevailing earnings season. Traders should plan their positions accordingly, with a focus on risk management.

Markets underwent a choppy intra-day session on weak Asian cues, but selective buying in banking and automobile stocks helped recovery at close. The market is in an overbought zone now and there is a lot of skepticism over interest rate movement, especially when concerns over demand slowdown in China and recession fears in the US continue to weigh. Technically, after a strong uptrend rally, the Nifty is comfortably trading above the 10-day SMA (Simple Moving Average) and it is also holding a higher bottom formation which supports further uptrend from the current levels. On weekly charts the index has formed a long bullish candle indicating the continuation of the uptrend. As long as the index is trading above the 10-day SMA or 18200 the positive sentiment will continue. Above 18200, the index is likely to move till 18450-18550. On the flip side, bulls may prefer to exit from the long positions if the index trades below 18200 and on further downside it may slip till 18000. For Bank Nifty, 43500 would be the sacrosanct level to watch out, above which it could rally till 44000-44300. On the other hand, a quick short term correction is possible if it trades below 43500 and below the same it could slip till 43000-42800.

Indices recouped early losses and posted minor gains. Automobile, financial stocks lead gains.

The Sensex was up 123.38 points or 0.20 percent at 62,027.90, and the Nifty was up 17.80 points or 0.10 percent at 18,314.80. About 1,650 shares advanced, 1,859 shares declined, and 129 shares were unchanged.

Indices recouped early losses and posted minor gains. Automobile, financial stocks lead gains.

The Sensex was up 165.49 points or 0.27 percentat 62,070.01, and the Nifty was up 35.15 points or 0.19percentat 18,332.15. About 1,640 shares advanced, 1,823 shares declined, and 145 shares were unchanged.

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