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Slideshow | Market likely to consolidate further with Nifty facing resistance at 18,400: Experts

In the week gone by, BSE Sensex gained 1,478.38 points (2.47 percent) to end at 61,223.03, while the Nifty50 added 443.1 points (2.48 percent) to close at 18,255.8

January 17, 2022 / 07:47 AM IST
sensx
Market continued the winning momentum in the fourth consecutive the week ended on January 14 with key benchmark indices crossing major hurdles as Nifty reclaimed the 18,000-mark and Sensex crossed the 61,000-level ignoring the rising Omicron cases and weak domestic as well as US macroeconomic data.
Mohit Nigam, Head - PMS, Hem Securities | On the technical front, the key resistance level for Nifty50 is 18400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 38800 and 37800 respectively.
Mohit Nigam, Head - PMS, Hem Securities | On the technical front, the key resistance level for Nifty50 is 18400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 38800 and 37800 respectively.
Sachin Gupta, AVP-Research at Choice Broking | Technically, the Nifty50 has been trading in a bullish trend from the last couple of days without enabling a selling pressure that indicates a bullish trend. On the daily chart, the recent candle has engulfed the last two days of candle and closed near the day high. The index has also been hovering above the Ichimoku Cloud formation with the positive cross line. A momentum indicator RSI and Stochastic has also indicated a positive crossover. At present, the index has support at 18100 levels while resistance comes at 18350 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank nifty has support at 37800 levels while resistance at 38800 levels.
Sachin Gupta, AVP-Research at Choice Broking | Technically, the Nifty50 has been trading in a bullish trend from the last couple of days without enabling a selling pressure that indicates a bullish trend. On the daily chart, the recent candle has engulfed the last two days of candle and closed near the day high. The index has also been hovering above the Ichimoku Cloud formation with the positive cross line. A momentum indicator RSI and Stochastic has also indicated a positive crossover. At present, the index has support at 18100 levels while resistance comes at 18350 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank nifty has support at 37800 levels while resistance at 38800 levels.
Ajit Mishra, VP - Research, Religare Broking | Markets will first react to the results of two heavyweights- HCL Technologies and HDFC Bank in early trade on Monday. We may see further consolidation in the index however the bias would remain on the positive bias. Participants should continue with the “buy on dips” approach and focus on sectors that are trading in sync with the benchmark.
Ajit Mishra, VP - Research, Religare Broking | Markets will first react to the results of two heavyweights- HCL Technologies and HDFC Bank in early trade on Monday. We may see further consolidation in the index however the bias would remain on the positive bias. Participants should continue with the “buy on dips” approach and focus on sectors that are trading in sync with the benchmark.
Vishal Wagh, Research Head, Bonanza Portfolio | Going ahead 18,000-18,080 will be good short-term support for upcoming trading sessions and on the upside 18,340 will act as new immediate resistance. Traders will be keenly watching the upcoming budget session as they position themselves for the volatility and would be even booking profits before the big event. The broad structure of the index still remains in favor of bulls.
Vishal Wagh, Research Head, Bonanza Portfolio | Going ahead 18,000-18,080 will be good short-term support for upcoming trading sessions and on the upside 18,340 will act as new immediate resistance. Traders will be keenly watching the upcoming budget session as they position themselves for the volatility and would be even booking profits before the big event. The broad structure of the index still remains in favor of bulls.
Rahul Sharma, Co-owner, Equity 99 | In coming days, we expect movement in markets to be sector specific. However Midcap and Smallcap space will show good move in coming days. Overall, the market outlook looks positive and one should look to keep add quality stocks in their portfolio. Traders should trade into sector specific stocks, keep booking their profit and trail strict stop loss. For Nifty 18200 will act as very crucial support on breaking which we might see 18120 levels. On upper side 18300 will act as crucial hurdle, if this level is breached, we might see 18370 levels and then even 18480 looks possible.
Rahul Sharma, Co-owner, Equity 99 | In coming days, we expect movement in markets to be sector specific. However Midcap and Smallcap space will show good move in coming days. Overall, the market outlook looks positive and one should look to keep add quality stocks in their portfolio. Traders should trade into sector specific stocks, keep booking their profit and trail strict stop loss. For Nifty 18200 will act as very crucial support on breaking which we might see 18120 levels. On upper side 18300 will act as crucial hurdle, if this level is breached, we might see 18370 levels and then even 18480 looks possible.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities | Earnings momentum is likely to continue in Q3FY22 from Q2FY22. Further, given recent events in light of the Omicron variant of Covid, it will be critical to closely listen to the management commentary of various corporates. Most of positives are already priced in the current valuations and hence investors should bet on the right sectors and select a superior stock offering decent risk reward will help generate alpha in 2022.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities | Earnings momentum is likely to continue in Q3FY22 from Q2FY22. Further, given recent events in light of the Omicron variant of Covid, it will be critical to closely listen to the management commentary of various corporates. Most of positives are already priced in the current valuations and hence investors should bet on the right sectors and select a superior stock offering decent risk reward will help generate alpha in 2022.
Stock Market Today:
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities | The texture of the market is bullish but due to an overstretched rally, the market could consolidate between 18050 to 18375. For the bulls, 18375-18400 would be the immediate hurdle and above the same, the same breakout formation will continue up to 18500. On the flip side, 18150 would be the sacrosanct support level to watch out for. If the index succeeds to close below the same, the Nifty could retest 18050-18000 levels. The Bank Nifty has completed one leg of correction and took support near the 9 days SMA. The structure suggests 38000 and 37500 would act as strong support zones. Above the same, the uptrend momentum will continue till 39000-39300.
Ruchit Jain, Lead – Research, 5paisa.com | Looking at the chart structure, we believe the up move is not completed yet. Inspite of some sluggishness in index towards the end of the week, the stock specific action was positive and we saw good buying interest in the broader markets. Hence, one should continue to trade with a positive bias and trade with a buy-on-dip approach in the coming week. With rise in index levels, the option writers are continuously focused on writing higher strike price put options and now, 18000 put option has attracted maximum open interest. This indicates that the support base for the short term is now around the 18000 mark and any dip towards this support should be used as a buying opportunity. On the higher side 18400-18500 would be the immediate range to look out for. In the banking index, 38000 and 37700 are the immediate supports. Considering the impulsive up move from the recent lows, this just seems to be a short term correction within an uptrend and we should soon see the index resuming its uptrend.
Ruchit Jain, Lead – Research, 5paisa.com | Looking at the chart structure, we believe the up move is not completed yet. Inspite of some sluggishness in index towards the end of the week, the stock specific action was positive and we saw good buying interest in the broader markets. Hence, one should continue to trade with a positive bias and trade with a buy-on-dip approach in the coming week. With rise in index levels, the option writers are continuously focused on writing higher strike price put options and now, 18000 put option has attracted maximum open interest. This indicates that the support base for the short term is now around the 18000 mark and any dip towards this support should be used as a buying opportunity. On the higher side 18400-18500 would be the immediate range to look out for. In the banking index, 38000 and 37700 are the immediate supports. Considering the impulsive up move from the recent lows, this just seems to be a short term correction within an uptrend and we should soon see the index resuming its uptrend.
Yesha Shah, Head of Equity Research, Samco Securities | Quarterly results will impact market sentiment and be the talk of the town next week as they begin to accelerate. With the expectation that companies would maintain their momentum from the previous quarters into the third quarter as well, investors may see whipsaw movements as earnings surpass or miss the mark of market forecasts. Furthermore, China's quarterly GDP data is due next week, which could influence market sentiment globally. Amidst the volatility, investors are advised to tread with caution and assess the company's long-term prospects rather than basing their investment decisions only on quarterly results.
Yesha Shah, Head of Equity Research, Samco Securities | Quarterly results will impact market sentiment and be the talk of the town next week as they begin to accelerate. With the expectation that companies would maintain their momentum from the previous quarters into the third quarter as well, investors may see whipsaw movements as earnings surpass or miss the mark of market forecasts. Furthermore, China's quarterly GDP data is due next week, which could influence market sentiment globally. Amidst the volatility, investors are advised to tread with caution and assess the company's long-term prospects rather than basing their investment decisions only on quarterly results.
Rakesh Patil
first published: Jan 17, 2022 07:47 am
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