The Nifty snapped its four-day winning streak to end lower on September 14 on weak global cues but the index managed to stay above the vital 18,000 mark and ended 66 points lower at 18,004.
The index opened sharply lower but managed to bounce back more than 300 points from the day’s low and even tested the previous day’s high at 18,091 in afternoon trade. Selling pressure in the final hours pushed the index lower.
As the closing was much higher than the opening level, the index formed a bullish candlestick on the daily charts, indicating that the Nifty was in a strong position and could rise to 18,100, experts said.
“On the lower end, the falling trend line has acted as crucial support for the Nifty. Besides, the index has been sustaining above the 50 exponential moving average (17,268) on the daily timeframe, confirming an uptrend,” Rupak De, Senior Technical Analyst at LKP Securities said.
The trend will likely remain positive as long as the Nifty remains above 17,700. On the higher end, the index may move towards 18,600, once it provides a decisive breakout above 18,100, the market expert said.
The broader market also made a smart recovery from the day’s low. The Nifty Midcap 100 and Smallcap 100 indices ended 0.33 percent and 0.07 percent lower.
The IT sector was the biggest loser of the day, down 3.4 percent. Pharma, oil & gas, FMCG and auto stocks, too, saw some correction. Gains in banking & financial services and metal stocks curtailed losses.
Also read: Gainers & Losers: 10 stocks that moved the most on September 14
India VIX, which indicates expected volatility over the next 30 days, went past the 18 mark, rising 4.62 percent to 18.28 levels.
On the Options front, the maximum Call open interest was seen at 18,000 strike followed by 18,500 strike, while maximum Put open interest was seen at 17,000 strike then 17,500 strike. Call writing was seen 18,000 strike followed by 17,900 strike while Put writing was seen at 18,000 strike then 17,500 strike.
The data indicates that in the immediate term, the Nifty50 may see a trading range of 17,700 to 18,200 in the coming session.
Also read: Markets rebound from early morning crash, Nifty manages to hold 18,000
Banking index
The Bank Nifty opened 565 points lower at 40,309 but soon bulls swung into action and the index zoomed towards 41,600.
The banking index rallied more than 500 points to end at a record closing high of 41,405 and formed a large bullish candle on the daily charts.
Now, it has to hold above 41,250 to make a move towards its all-time high of 41,829 and 42,000 levels whereas supports are placed at 41,000 and 40,750 levels, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.
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