Stock Market Today:
The Nifty continued its downtrend for the third straight session, losing nearly a percent on April 7 as traders turned cautious on the eve of the RBI monetary policy outcome. The fall in Asian markets also dented sentiment on Dalal Street.
The index, which closed 168 points down at 17,639, formed a bearish candle on the daily charts.
It stoutly defended 17,600, which should act as a support but if it gets broken in the coming session, it will add to the selling pressure, experts said.
“The inability of the bulls to find support in the bullish gap zone of 17,791 and 17,700 is hinting that a short-term downswing may be in place,” said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.
If the Nifty slips below 17,600 in the next session, weakness will can extend to 17,400, where some support can be expected.
As the market is in a downward spiral for the last three sessions, some stability should be found around 17,600, Mohammad said, adding on such stability, a sideways consolidation can be expected.
For the time, it will be prudent to wait for some signs of strength before going long, he said.
India VIX was down 0.13 percent to 19 levels. “Volatility is overall hovering at lower levels, which could again attract buying interest on declines,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
After three days of fall, the options data indicates a change in trading range from 17,300 to 18,000 levels against 17,500-18,200 earlier.
On the options front, maximum Call open interest was seen at 18,000 strike followed by 19,000 strike, while maximum Put open interest was seen at 17,500 strike followed by 17,000 strike.
Marginal Call writing witnessed at 17,800 strike then 17,700 strike, while 17,600 strike saw maximum Put writing followed by 17,300 strike.
Banking index
The Bank Nifty, which played a big role in previous two-day’s fall, was muted on April 7. It opened negative at 37,422 but took support near 37,350 and recovered well towards 38,000 in the first half. However, it failed to hold on to the gains and tumbled to 37,500 in the second half.
The index closed with a loss of 75 points at 37,557 but formed a bullish candle on the daily scale as the closing was higher than the opening level.
“Now it has to hold above 37,500 levels to move up towards 37,750 and 38,000 levels. However, support can be seen at 37,350 followed by 37,000 levels,” Taparia said.
Positive setup seen in Bharat Electronics, Godrej Consumer Products, Piramal Enterprises, AU Small Finance Bank, Hindustan Aeronautics, Axis Bank, Info Edge, Lupin, LIC Housing Finance, United Breweries, ICICI Bank, HUL and Siemens, he said.
Weakness was seen in Nippon Life India, Dixon Technologies, Titan, Indian Energy Exchange, L&T Technology Services, United Spirits, L&T Infotech, Coforge, TCS, Mphasis, Bajaj Finserv and ACC.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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