The Nifty50 remained directionless throughout the session on September 2 and ended 3.3 points down at 17,540 after a volatile session amid weak global cues.
The index opened higher at 17,598 and climbed up to 17,644 but lost all the gains in initial minutes to slip to 17,476. It recouped losses in noon and remained rangebound for the rest of the session.
The index formed a small-bodied bearish candle on the daily charts. It needs to give a decisive close on either side of 17,777-17,400 for a directional move, experts said.
On the weekly scale, it formed a bullish candlestick as the closing was higher than opening levels, but the index lost 0.11 percent during the week.
The sectoral trend was mixed. Select banking & financial services, FMCG and metal stocks gained, while some auto, technology and pharma stocks saw selling pressure.
The broader markets saw moderate losses. The Nifty midcap 100 index was down 0.4 percent and smallcap declined 0.2 percent.
“Technically, the Nifty had formed bullish candle on weekly charts. However, after a stellar rally, the index witnessed profit booking at higher levels. Currently, the index is hovering between 17,450 and 17,700 range,” Amol Athawale, Deputy Vice President – Technical Research at Kotak Securities, said.
Also read: Gainers & Losers: 10 stocks that moved the most on September 2
For traders, the 20-day simple moving average (SMA) and 17,450 will be the important support zone, while 17,700 can act as a major hurdle.
Kotak Securities is of the view that directional upside move is possible only after the 17,700 breakout, above which, the index can move to 17,900-18,000. Below 17,450, the index can retest 17,250-17,150.
The volatility index India VIX fell 1.6 percent to 19.55 levels but is still at elevated levels.
On the options front, the maximum Call open interest was seen at 17,500 strike followed by 18,000 strike, with Call writing at 17,600 strike then 17,500 strike. The maximum Put open interest was seen at 16,000 strike then 16,500 strike, with Put writing at 17,600 strike followed by 16,000 strike.
The data indicates that the Nifty may remain in an immediate range of 17,500-18,000.
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Banking index
The Bank Nifty also started off on a positive note at 39,422 and closes the session 120 points higher at 39,421. It formed a Doji pattern on the daily charts, indicating indecisiveness among bulls and bears about the future trend.
The banking index gained more than one percent for the week and formed a bullish candlestick on the weekly scale.
If the index closes above the 40,000-mark, there could be uptrend towards record highs, experts said.
“The Bank Nifty has support at 38,500 levels while resistance is at 40,000 mark,” Palak Kothari, Senior Technical Analyst at Choice Broking said.
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