Moneycontrol PRO
Upcoming Event:Experts and leaders discuss how modern digital tools are transforming the media industry. Register now

Weakness likely to continue, Nifty has support at 17,400, say experts

The Nifty is respecting the first line of defence—the 20-EMA on the daily chart at around 17,400 and its breakdown can push the index to 17,250. In case of a rebound, the 17,650-17,750 will be the immediate hurdle says Ajit Mishra of Religare Broking

April 18, 2022 / 07:22 AM IST
In the holiday-shortened last week, the Indian equity benchmark indices lost nearly 2 percent amid weak global markets. The Sensex shed 1,108.25 points, or 1.86 percent, to close at 58,338.93, while the Nifty50 fell 308.65 points, or 1.73 percent, to end at 17,475.7 levels.
In the holiday-shortened last week, the Indian equity benchmarks lost nearly 2 percent amid weak global cues. The Sensex shed 1,108.25 points, or 1.86 percent, to close at 58,338.93, while the Nifty50 fell 308.65 points, or 1.73 percent, to end at 17,475.7.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities | Nifty is consistently witnessing profit booking at higher level, the texture is weak but high chances of pullback rally is not ruled out if the index stand above 20-day SMA. Above which the Nifty/Sensex could move up to 17700/59000 or 10-day SMA. Further upside may also continue which could lift the index up to 17800-17850/59300-59450. On the flip side, 17450-17400/58200-58000 would be the sacrosanct support zone. Below the same, index would retest the level of 17200-17100/57300-57000.
Amol Athawale, Deputy Vice President-Technical Research, Kotak Securities | The market is consistently witnessing profit0booking at higher levels, the texture is weak but there is a high chance of a pullback rally if it stays above the 20-day SMA. The Nifty and the Sensex could move to 17,700 and 59,000 or 10-day SMA. Further upside may continue, lifting the indices to 17,800-17,850 and 59,300-59,450. On the flip side, 17,450-17,400 and 58,200-580,00 would be the sacrosanct support zone for the Nifty and the Sensex. Below them, the Nifty can retest 17,200-17,100 and the Sensex 57,300-57,000.
Rupak De, Senior Technical Analyst at LKP Securities | Going ahead, the weakness may continue. Crucial support is seen at 17400, below which a serious correction in the market may be witnessed. On the higher end, resistance is visible at 17600/17800.
Rupak De, Senior Technical Analyst, LKP Securities | Going ahead, the weakness may continue. For Nifty, crucial support is seen at 17400, below which a serious correction may be witnessed. On the higher end, resistance is visible at 17,600 and 17,800.
Ruchit Jain, Lead Research, 5paisa.com | Next week’s opening would be depended on the global market movement in next couple of days and if the index manages to start the week on a positive note, then the 20 EMA could then become a strong support for the short term. From a broader perspective, the index may see a time wise correction in the second half of the April series with more opportunities in sector/stock specific momentum. The immediate support for Nifty are placed around 17370 and 17275 while resistances are seen around 17755 and 17850. For the coming week, traders should focus on stock specific trades where better opportunities could be seen and since our market would resume trading after a long weekend, Monday’s move could set the momentum for the short term.
Ruchit Jain, Lead Research, 5paisa.com | This week's opening will depend on the global market movement and if the index manages to start the week on a positive note, then the 20-EMA could become a strong support for the short term. From a broader perspective, the index may see time- wise correction in the second half of the April series, with more opportunities in sector and stock- specific momentum. The immediate support for the Nifty are at 17,370 and 17,275, while resistances are seen around 17,755 and 1,7850. During the week, traders should focus on stock-specific trades, where better opportunities can be seen and since the market would resume trading after a long weekend, the April 18 session could set the momentum for the short term.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, market is likely to remain volatile till the inflationary pressure persists, raising scope for aggressive rate hike by Central Banks globally. Q4FY22 result season has started with TCS number being in line with expectation. Two index heavy weight Infosys and HDFC Bank announced their results over the long weekend and market would react on Monday. Overall we expect healthy 4QFY22 earnings which should drive the stock specific action in the market.
Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services | The market is likely to remain volatile till the inflationary pressure persists, increasing the chances of an aggressive rate hike by central banks globally. Q4FY22 result season has started, with TCS numbers being in line with expectations. Two index heavyweights Infosys and HDFC Bank announced their results over the long weekend and the market would react to them on April 18. Overall, we expect healthy 4QFY22 earnings which should drive stock-specific action in the market.
Prashanth Tapse, Vice President (Research), Mehta Equities | Technically, weakness in the market will continue till the Nifty trades below the 17421 mark. Technically, the make-or-break Nifty’s support is seen at its 200-DMA at the 17,159 mark. Intraday support at 17427 mark. Caution will again be the buzzword. Investors should look only for value investing with a long term perspective.
Prashanth Tapse, Vice President (Research), Mehta Equities | Technically, weakness will continue till the Nifty trades below 17,421. The make-or-break support is seen at its 200-DMA at the 17,159 mark. Intraday support is at 17,427. Caution will again be the buzzword and investors should look only for value investing with a long-term perspective.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | The sacrosanct support of '20-day EMA' is positioned at 17450 which coincides with the breakout point of the previous congestion zone. Hence till the time, Nifty is holding 17400 – 17200, we remain a bit hopeful of some recovery here. We hope there is no aberration on the global front in the coming days and any favorable cue would certainly be a cherry on the cake. On the upside, 17700 followed by 17850 are the levels to watch out for. If Nifty has to regain any strength, it needs to surpass these barriers with some authority. Let’s see how things pan out and in our sense, if the benchmark has to move higher from here, the banking needs to take the charge (which we are assuming on this occasion). The Bank Nifty is placed at its rock-solid support of 37000 – 36800. A move beyond 38000 would provide the impetus for the next leg of the rally. Apart from this, although the broader market underwent some profit booking in the last couple of days, we still expect the smaller names to outperform going forward.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | The sacrosanct support of "20-day EMA" is positioned at 17,450, which coincides with the breakout point of the previous congestion zone. Hence till the Nifty holds 17400–17200, hopes of recovery remain. We hope there is no aberration on the global front in the coming days and any favourable cue would certainly be a cherry on the cake. On the upside, 17,700 followed by 17,850 are the levels to watch out for. For  the Nifty to regain strength, it needs to surpass these barriers with authority. If the benchmark has to move higher, the banking needs to take the charge (which we are assuming on this occasion). The Bank Nifty is placed at its rock-solid support of 370,00–36,800. A move beyond 38,000 would provide the impetus for the next leg of the rally. Though the broader market underwent some profit booking in the last couple of days, we still expect the smaller names to outperform.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | The Nifty started the session on a positive note on April 13 however couldn’t extend beyond the key hourly moving averages. Thereon the index moved back towards the 20 DMA, which has been absorbing the selling pressure for the last couple of sessions. The Nifty has dipped into the support zone of 17500-17400, which encompasses multiple support parameters. Thus this is an opportunity for short term traders for staggered buying. On the higher side, 17600-17665 is a near term hurdle zone. The index is expected to pick up momentum on the upside once this barrier is crossed on the higher side.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | The Nifty started the session on a positive note on April 13 but couldn’t extend beyond the key hourly moving averages. Thereon, the index moved back towards the 20-DMA, which has been absorbing the selling pressure for the last couple of sessions. The Nifty has slipped into the support zone of 17,500-17,400, which encompasses multiple support parameters. Thus, this is an opportunity for short-term traders for staggered buying. On the higher side, 17,600-17,665 is a near-term hurdle zone. The index is expected to pick up momentum on the upside once this barrier is crossed on the higher side.
Yesha Shah, Head of Equity Research, Samco Securities | As earnings season gathers pace, D-street will be eyeing quarterly results to gauge the future trajectory of Mr. Market. BFSI as well as IT companies will be in limelight as market players decode results and management commentary of a slew of companies in these sectors. As no major global or domestic macroeconomic events are expected next week, stock-specific movements will be more pronounced and whipsaw movements can be witnessed as a result of earnings hits and misses. Therefore, instead of basing investment actions solely on quarterly performance, investors should consider long-term potential of their investee companies and stay put in resilient ones.
Yesha Shah, Head of Equity Research, Samco Securities | As earnings season gathers pace, D-Street will be eyeing quarterly results to gauge the future trajectory of Mr Market. BFSI as well as IT companies will be in the limelight as market players decode results and management commentary of a slew of companies in these sectors. As no major global or domestic macroeconomic events are expected during the week, stock-specific movements will be more pronounced and whipsaw movements can be witnessed as a result of earnings hits and misses. Therefore, instead of basing investment actions solely on quarterly performance, investors should consider the long-term potential of their investee companies and stay put in resilient ones.
Ajit Mishra, VP - Research, Religare Broking | Markets will react to two major earnings i.e. Infosys and HDFC bank on Monday i.e. April 18. Besides, any major development on the global front in the next four days would also impact the sentiment. On the index front, Nifty is currently respecting the first line of defence i.e. 20 EMA on the daily chart around 17,400 and its breakdown can push the index to the 17,250 zone. In case of a rebound, the 17,650-17,750 zone would act as immediate hurdle. We suggest preferring hedged bets and maintaining focus on stock selection.
Ajit Mishra, VP - Research, Religare Broking | Markets will react to Infosys and HDFC Bank numbers on April 18. Besides, any major development on the global front in the next four days would also impact the sentiment. On the index front, the Nifty is respecting the first line of defence— the 20 EMA on the daily chart around 17,400 and its breakdown can push the index to 17,250.  In case of a rebound, the 17,650-17,750 zone would act as the immediate hurdle. We suggest preferring hedged bets and focusing on stock selection.
Rakesh Patil
first published: Apr 18, 2022 07:22 am
Sections
ISO 27001 - BSI Assurance Mark