Technical View: Nifty ends flat amid smart recovery, upside bounce likely as long as it holds 23,496

Market Today

The Nifty 50 index recovered smartly from the intraday lows of 23,496.15 to end with marginal losses in the highly volatile session on January 8 led by FMCG, Information Technology and oil & gas stocks.

The index failed to build on the opening gains to end 18.95 points lower at 23,688.95, forming small red candle on the daily chart.

ONGC, ITC, Reliance Industries, TCS, Asian Paints were among the top gainers on the Nifty, while losers were Apollo Hospitals, Trent, Bajaj Auto, Adani Ports, Shriram Finance.

Nifty Midcap and Smallcap indices shed 1 percent each.

On the sectoral front, FMCG, oil & gas, IT rose 0.4-1.5 percent, while PSU bank, pharma, metal, media, media, bank, auto shed 0.4-1 percent.

"Nifty witnessed smart upside recovery from the lows on Wednesday after showing a deep cut in the early-mid part of the session and settle the day lower by 18 points. Nifty opened on a positive note and slipped into sharp weakness soon after the opening. The market has started to recover from the swing low of 23496 levels and the upside recovery extended in the mid to later part of the session," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

"Though, Nifty placed below the crucial 200-day EMA at 23,700 levels, there is an absence of sharp break down below this key support. This 200 DEMA has offered significant trend reversal on upside in the past."

"The short term trend of Nifty remains weak. But the smart upside recovery from near 23,500 levels is indicating chances of an upside bounce in the coming sessions. A sustainable move above the hurdle of 23,800 levels could confirm upside bounce in the market. Immediate support is placed at 23,496 levels," he added.

After a flat start, the Bank Nifty index fell below 50,000 mark but late hour recovery helped to recover 445 points to close at 49,835.05, down 0.73 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.