Technical View: In another volatile session, the Nifty 50 index today erased some of the losses of the previous session. The index managed to close near the day’s high amid buying seen in information technology, pharma and private banking stocks. The index opened slightly higher and showed further gains in the initial hours. But profit booking in the middle of trading hours wiped out all the gains. This pulled the index below 23,000. However, the index reversed the losses in the last hour and closed comfortably above 23,150 levels. At the end of trading, Nifty closed at 23,155.35, up 130.70 points or 0.57 per cent.
Wipro, Infosys, TCS, Tech Mahindra, Sun Pharma were among the top gainers stocks on Nifty. While Bharat Electronics, Tata Motors, Trent, Axis Bank and Power Grid were among the losers stocks.
Nifty Midcap and Smallcap indices fell 1.5 percent each.
On the sectoral front, the Nifty IT index rose 2 per cent. While pharma and private bank indices rose 0.5 percent. On the other hand, the realty index fell 4.5 percent. While Media, Metal, Energy, Consumer Durables, Oil & Gas, PSU Bank indices fell by 0.5-1.5 per cent.
Today dealers made bumper buying in two stocks of pharma and hotel sector, know how much both the stocks will rise.
How could the market move on Thursday 23rd January?
Aditya Gaggar of Progressive Shares said “The market faced sustained selling pressure. Selling pressure was particularly strong in mid and small caps. This pulled the index down to hit the previous day’s low. However, HDFC Bank After Q3 results, there was a slight recovery in IT stocks which gave a broad upward push to the index. IT stocks ended the session at 23,155.35, but the broader market witnessed a strong recovery. The performance remained weak,” said Aditya Gaggar, director, Progressive Shares.
He further added “The daily chart is indicating a hammer candlestick pattern with a possible positive divergence in the RSI. A sustainable move in Nifty above 23,400 could confirm this divergence. While a close below 23,000 could lead to a fall in the index towards 22,800. 23,000 level will act as immediate support in the index. It is visible at the level of 23,280.
Bank Nifty index also remained volatile in the first half. However, showing a recovery of 650 points from the day’s low, it closed at the day’s high of 48,724.40 with a gain of 0.32 percent.
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