Technical View: Nifty gains for third consecutive day; support lies at 23,065

Market Today

In a volatile session on January 30 (monthly F&O expiry day), the Nifty 50 index ended with marginal gains, extending the winning streak for third straight session amid buying seen in the oil & gas, pharma and realty names.

On the back of weak global cues, post US Federal Reserve, as expected, kept the rates unchanged, the index opened on a flat note but buying helped Nifty to surpass 23,300, intraday. However, mid-day profit booking erased all the day's gain, but ended near day's high amid strong recovery in the final hour.

The Nifty rose 86.40 points or 0.37 percent to end at 23,249.50.

Bharat Electronics, Hero MotoCorp, Bharti Airtel, Cipla, Power Grid Corp were among major gainers on the Nifty, while losers were Tata Motors, Shriram Finance, Adani Enterprises, Bajaj Finserv, Adani Ports.

The broader indices underperformed with Nifty Midcap and smallcap indices ending on a flat note.

On the sectoral front, auto, IT, media, consumer durables shed between 0.4-2 percent, while oil & gas, energy, pharma, FMCG, realty rose 0.5-1 percent.

"The word expiry is always accompanied by volatility; seen in the Index that showed a steady start before trending upwards and oscillating within a defined range for most of the session. However, a sharp decline in the afternoon erased all of its earlier gains. In the final hour of trade, a strong recovery helped the Index close higher at 23,249.50 marking a gain of 86.40 points. Among the sectors, Realty and Energy were the top performers, while IT and Media lagged," said Aditya Gaggar Director of Progressive Shares.

"The Index has broken out of its Falling Wedge formation, suggesting a shift in momentum towards the positive, but the candlestick pattern is not that encouraging. We will wait for further confirmation. For now, the zone of 23,350-23,400 will serve as resistance while support is at 23,065," he added.

The Bank Nifty index also witness a high volatile session. After a positive start, the index touched day's high of 49,426.20, before closing at 49,311.95, up 0.30 percent.

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