Beginning the week on a negative note, the Nifty ended in the red on April 11 amid weak global cues with IT and financial stocks such as HCL Tech, Infosys, Wipro, SBI Life and HDFC twins among major drags.
Nifty opened at 17,740.90 against the previous close of 17,784.35 and touched intraday high and low of 17,779.05 and 17,650.95, respectively. The index ended 109 points, or 0.62 percent, lower at 17,674.95.
Nifty IT index fell 1.41 percent while oil & gas index jumped 1.85 percent. Media and realty indices clocked gains of over a percent each. Nifty Bank index fell 0.37 percent.
The market remained sideward throughout the session as the benchmark Nifty failed to give a directional move.
"Technically, on daily charts, the index has formed a small inside body bearish candle which indicates indecisiveness between bulls and bears. We are of the view that a 10-day simple moving average (SMA) and 17,600 retracement support zone would act as key support levels for the Nifty," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
"Above this, a strong possibility of a pullback rally up to 17,850-17,900 is not ruled out. On the flip side, below 17,600 range breakout, the market could retest the level of 17,500-17,430," Chouhan added.
Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the Nifty found resistance around the previous closing on the daily chart. "The index on the daily chart has formed an inside day bar which suggests indecisiveness. On the lower end, support is visible at 17,600/17,400. On the higher end, the resistance is seen at 17,800," said De.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in said Nifty may be bound to remain volatile
going forward. However, as long as bulls are able to defend 17,600 levels, the index should remain sideways with a positive bias.
"In that scenario, the strength should initially extend towards 18,100. Contrary to this, a breach of 17,600 on a closing basis shall pave the way for more weakness. In that scenario, the downswing shall initially extend into the zone of
17,400 – 17,350 where some meaningful support exists. For the time being, it looks prudent to remain neutral whereas existing long index positions should be held with a stop below 17,600," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.