Indian market remained volatile in morning trade on weak global cues but the bulls managed to push the benchmark indices well in the green. The S&P BSE Sensex rose 125 points to 54,402, while the Nifty gained 20 points to 16,258.
Profit booking was seen in broader markets. The S&P BSE midcap index fell by more than 1 percent and the smallcap index was down by 0.7 percent.
“The domestic broad market reversed its early gains following weak global trends and continued selling in mid and smallcaps. However, main indices managed to close near last week’s closing due to stability in largecap stocks,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Optimism was noticed in media stocks, especially multiplex, on the expectation of unlocking in major cities, while PSU banks have been witnessing correction due to delays in privatisation. Selling pressure forced metal stocks to trade low, he added.
Sectorally, buying was seen in banks, IT, and finance, while selling pressure was visible in metals, telecom, oil & gas and the public sector.
India VIX remained flattish at 12.60 levels. Stability in volatility indicates that the bulls are holding the market to cheer fresh momentum.
On the options front, the maximum Put OI is at 15,000 followed by 16,000 strike, while the maximum Call OI is at 16,500 followed by 16300 strike.
“Options data suggests a broader trading range in between 16,000 and 16500 zones, while an immediate trading range in between 16,100 and 16,400 zones,” experts say.
Here’s what experts suggest investors should do on August 10:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services
In the first half of the session, the Nifty failed to hold 16,300 and drifted towards 16,180 but the second half saw a recovery towards 16,250 zones.
The Nifty formed a small-bodied candle with a long lower shadow which indicates that declines are being bought.
Now, the index has to hold above 16,200 zones to witness an up move towards 16,400 then 16,500 zones, while on the downside, support is seen at 16,150 then 16,00o.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
After a sharp rally in the week gone by, the Nifty is consolidating in the range of 16,300-16,150 level. However, the larger breakout continuation texture is still on the positive side and could continue in the short run.
For the day traders, the 16,180-16,150 level would be strong support and as long as it’s trading above the same the uptrend is intact.
On the other hand, 16,300 would be the immediate hurdle for the Nifty and above the same, the continuation formation is likely to continue up to 16,350-16,375.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed continuation in the consolidation on August 9. Structurally, with this consolidation, the bulls seem to be warming up for the next leg up. Multiple parameters are there on the downside to provide support near 16,200-16,150.
This includes hourly lower Bollinger Band, 40-hour exponential moving average and 23.6 percent retracement of the recent rally. A gap area of 16,176-16,146 is there to offer a cushion on the downside.
The Nifty is expected to form a base near these support parameters and start the next move up. Short-term target on the upside is pegged at 16,400.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Markets had a quiet day. The Nifty did cross 16,300 but failed to close above the level. Once it does, it can move to 16,500-16,600. Since a good support range lies at 16050-16100, we can buy this market on dips or intraday corrections.
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