Technical View: Nifty ends flat amid volatility, support at 21,453

Market Today

The market ended January 9 on a flat note as the benchmark indices failed to hold on to the gains amid volatility to close near the day’s low.

The Nifty opened gap up and extended gains as the day progress to touch the day’s high of 21,724. But profit booking in the final hour, especially in banking names erased most of the gains.

From the day's high, the Nifty fell 180 points to close at 21,544.80, up 31.80 points, or 0.15 percent, from the previous close.

The Nifty witnessed an extremely volatile day of trade, said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas. "Amid the volatile price action, the Nifty is still within the broad range 21,850-21,500," he added."

On the way down, multiple support parameters —such as the 20-day moving average (21,453) and 21,406 (50 percent of the Fibonacci retracement level) — shall provide cushion in case of a deeper correction.

Bank Nifty

The banking index ended 0.5 percent lower at 47,242.65 on profit booking. It opened above 47,700 and touched the day’s high of 47,939.30 but squandered the gains later in the session.

The Bank Nifty witnessed continued dominance of the bears as selling pressure intensified from higher levels. The index faces a strong hurdle at the 48000, where a significant buildup in open interest is see on the call side, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

The immediate support is at 47,000-46,900. A breach would trigger aggressive selling pressure, potentially leading to further downside, he added.

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