The tug of war continued in Tuesday’s trading session as the domestic indices were dragged by automobile, technology and metals. The 30-share BSE Sensex pack slipped 40 points or 0.07 per cent to close at 57,614; while the broader NSE Nifty index moved 34 points or 0.20 per cent lower to settle at 16,952.
Experts believe that this bearish momentum is likely to continue. “The momentum oscillator is in the bearish crossover, indicating bearish momentum. Going forward, the sentiment is likely to remain weak until it remains below 17250. Sell on the rally will most likely remain popular among traders. On the lower end, 16950–16900 may act as immediate support, below which the index may fall down to 16750 over the short term,” said Rupak De, Senior Technical Analyst, LKP Securities.
“On the technical front, no sign of respite was seen in the index as it struggled in a tight range. There have been no significant changes in the chart structure, showcasing the timidity among the market participants,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd.
As far as levels are concerned, he said that 16900 remains the immediate support, followed by the sacrosanct support of the 16850-16800 zone. While on the higher end, 17100-17200 is likely to act as the sturdy wall, and an authoritative breach beyond the same could only trigger some more respite in the comparable period.
“Going forward, we would advocate the participants to keep a close tab on the mentioned levels and avoid undue risk in the market. Even though the indices are not doing much, sector churning is visible in the broader market, and hence one should focus on identifying such potential movers. In the meanwhile, stay abreast with global developments,” Krishan added.
Ajit Mishra, VP, Technical Research, Religare Broking expects volatility to remain high due to the scheduled expiry of March month derivatives contracts. “On the index front, participants have been trying to defend 16,900 in Nifty for the last three sessions and its breakdown may trigger a sharp reaction on the downside. Needless to say, the recent sell-off in the broader indices may deteriorate further. We thus reiterate our view to limit trade and maintain positions on both sides,” he said.
On Monday, the BSE’s barometer Sensex added 126.76 points, or 0.22 per cent, to settle at 57,653.86, while The 50-share pack Nifty50 advanced 40.65 points, or 0.24 per cent, to 16,985.70.