Technical View: Nifty ends flat amid volatility; 17,525-17,550 would be immediate resistance

After a decent start, the Nifty extended the gains as the day progress, however, last hour selling erased all the gains, forming a small inverted Hammer candlestick.

The Nifty index started the week on a positive note but ended with marginal gains in a volatile session on April 10.

After a decent start, the Nifty extended gains as the day progressed. However, last-hour selling erased all the gains, forming a small inverted Hammer candlestick.

"While benchmark indices ended a tad higher in a lacklustre trading session, realty, oil & gas, auto and power stocks rallied sharply after having retreated last month. There are hopes that the interest rate cycle seems to be peaking out after last week's status quo by RBI and if rates begin to fall going ahead, rate-sensitive stocks would be the most preferred bet by investors," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

"Technically, the Nifty has formed a small inverted Hammer candlestick, which indicates indecisiveness between bulls and bears. Due to temporary overbought conditions, we could see some profit booking at higher levels going ahead."

"For Nifty, 17,525-17,550 would act as an immediate resistance area while 17,550-17,500 or the 50-day SMA (Simple Moving Average) would act as key support zones," Chouhan added.

Mixed trend saw on the sectoral front with selling seen in the bank and FMCG names, while realty index added 4 percent, and auto, power, oil & gas indices up 1 percent each.

Nifty Bank index opened around 41,100 and remained in the range of 41,139.85 on the higher side and 40,727 on the lower side, before finishing at 40,834.65, down 0.5 percent.

"The Bank Nifty index faced selling pressure from higher levels after a strong rally last week. The index if fails to sustain above the level of 41,200 can witness some profit booking towards 40,600-40,500 levels," said Kunal Shah, Senior Technical Analyst at LKP Securities.

"The upper resistance if taken out will lead to further short covering towards the 42,000 level," he added.

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