Technical View: The Nifty index closed higher for the second consecutive session on December 27, the first day of the January series, led by auto, media, FMCG and pharma stocks. The index opened on a positive note amid mixed global cues. Its lead increased as the day progressed. But profit booking was seen at higher levels amid selling in Metal, Realty, Oil & Gas and PSU Bank sectors. Due to this the index lost some of its intraday gains. The Nifty 50 index closed at 23,813.40, up 63.20 points or 0.27 per cent. The index rose 1 percent during the week.
Dr. Reddy’s Labs, M&M, IndusInd Bank, Eicher Motors, Bajaj Finance were the major gainers on Nifty. While losers included shares of Hindalco Industries, SBI, ONGC, Coal India, Bharat Electronics.
Nifty Midcap 100 index was down 0.26 percent. While Nifty Smallcap 100 index was up 0.15 percent. Sectoral indices like Auto, Pharma, Media, FMCG were up 0.3-1 per cent. While Realty, PSU Bank, Oil & Gas, Metal indices were down 0.5-1 percent.
HDFC Securities’ Nagraj Shetty’s opinion on Nifty
HDFC Securities’ Nagaraj Shetty said, “After showing a limited range of fluctuations in the last few sessions, Nifty moved in a limited range on Friday. Today it closed with a gain of 63 points amid volatile trade. After opening on a positive note today, Nifty moved higher in the early stages, however, it managed to overcome the resistance at 23,900-24,000 levels. Didn’t last. Weakened from highs in the middle part of the session and slipped down.”
“A small green candle with upper shadow formed on the daily chart. Technically, this pattern signals an attempted upside breakout of short range movement with a lack of strength. However, this is not a good sign.”
He further added “The opening downside gap of December 19 is still intact six sessions after its formation. The said down gap can be considered as a bearish runway gap. This gap usually forms in the middle of a down trend. “
“The short term trend of Nifty looks slightly positive with range bound action. The market may face strong overhead resistance around 24,000-24,200 levels till next week. Any move above these resistances will lead to bullish selling. There may be an opportunity for sell-on-rise. Immediate support is seen at 23,650. Shetty said this.
Bank Nifty showed a rise of 1 percent this week
Bank Nifty index also opened with a positive trend. But despite the slight fall, it was seen trading higher intraday before closing at 51,311.30 with a gain of 0.27 percent. It went above 51,600. The index extended the previous session’s gains. Bank Nifty closed one percent higher this week.
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