Nifty could not hold on to the intraday bounce after a weak opening on May 10 and closed in the negative for the third consecutive session
Indian markets could open flat in line with rangebound Asian markets today and mixed US markets on Tuesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Nifty could not hold on to the intraday bounce after a weak opening on May 10 and closed in the negative for the third consecutive session. Post-1445 Hrs, it sold off to close 0.38 percent or 61.8 points lower at 16,240.
The fact that the Nifty closed almost at the intraday low after making an attempt to recover does not portend well. 16,341-16,013 could be the band for the Nifty for the near-term, Jasani said.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, Despite the upsurge in overnight US markets, SGX Nifty is trading below the dotted lines, indicating a nervous start for our stock markets. Sentiments will be mostly negative during the trading session, as negative factors will continue to weigh on investors’ minds.
FIIs have continued with their exit strategy and sold shares worth Rs 3,960.59 crores on Tuesday. The rising interest rate scenario across key nations has raised concerns of a fragile economic growth going ahead. Technically speaking, Nifty’s interweek support is seen only at 15,901 mark and below the same expect a waterfall of selling towards 15,200-15,250 mark, Tapse said.
Mohit Nigam, Head – PMS, Hem Securities said: The Indian market is projected to open flat, according to the SGX Nifty and global trends. The US stock market was trading higher, recovering from a recent sell-off triggered by concerns about inflation, rising interest rates, and the possibility of a worldwide recession.
The rising dollar index and the extended crisis in Ukraine have changed international dynamics and increased selling pressure internationally in recent weeks. As a result, market direction is very erratic and tough to predict. Indian markets are extremely volatile as a result of FII selling, rate hikes by the US Fed and RBI, growing inflation, and continuous geopolitical tensions between Russia and Ukraine, he said.
Immediate support and resistance for Nifty are 16,000 and 16,500 respectively. Immediate support and resistance for Bank Nifty are 33,500 and 35,000 respectively, Nigam added.
At close on May 10, the Sensex was down 105.82 points or 0.19 percent at 54,364.85. The broader Nifty was down 61.90 points or 0.38 percent at 16,240.
