Nifty, Sensex end flat in red; volatility likely to persist, add quality stocks on dips, say analysts

Nifty, Sensex end flat in red; volatility likely to persist, add quality stocks on dips, say analysts

Domestic benchmark indices pared opening gains to end in red amid high volatility. The 30-pack BSE Sensex index settled 49 points lower at 59,197, while NSE Nifty ended flat at 17,656. Sectorally, the Nifty Private Bank and FMCG indices fell 0.5% each, while buying was seen in oil & gas, power and metal stocks. In the broader market, the BSE MidCap and SmallCap indices ended marginally higher. India VIX closed at 19.53 down by 0.66%. According to analysts, volatility is likely to persist in equity markets in coming sessions. As long as Nifty holds 17550, it could retest the17750-17850 levels, they said adding that investors may add quality stocks on dips.

Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

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Rupak De, Senior Technical Analyst, LKP Securities

Nifty failed to capitalize on early gains as profit-taking took place around 17,750. On the lower end, 17,600 acted as support for the index. The trend remains sideways as Nifty failed to provide any directional breakout. Resistance seen at 17,770; whereas, support is visible at 17,580/17,468.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“As US markets were closed on Monday, local markets mostly witnessed a range-bound trend after see-sawing in early trades. Profit taking in banking & FMCG stocks saw indices finally end with marginal losses. Technically, the Nifty opened firm but once again witnessed profit booking near its important resistance level of 17750. Currently, the index is consolidating near the 20-day SMA (Simple Moving Average) and taking support near 17550. As long as the index is holding the 17550 level, it could retest the level of 17750-17850. On the flip side, a fresh round of selling is possible after the dismissal of 17550 and on further decline, it could slip till 17500-17400.”

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty, though having closed almost flat, formed higher top higher bottom formation compared to the previous session. It formed a high wave doji candle suggesting indecision after a rise. US markets are slated to open today post a holiday on Monday and could influence the opening of our markets on Wednesday. Nifty could remain in the 17540-17777 band for the near term.”

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Palak Kothari, Senior Technical Analyst, Choice broking

“Nifty has taken support from 21-HMA as well as the middle band of Bollinger in an hourly chart which suggests strength to the upside. The support for nifty has shifted around 17450 levels while on the upside 17770 may act as an immediate hurdle. On the other hand, Bank nifty has support at 39000 levels while resistance at 40200 levels. Overall, the sector-specific movement has been observed majorly Metal & Energy stocks are looking bullish for an upcoming session. The investor can add on dips.”

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