BSE Sensex ended in the red for the second straight day on Wednesday, although NSE’s Nifty settled flat at 15,576. Analysts think that today’s fall in the markets points towards an impending consolidation. The broader markets outperformed the equity benchmarks in today’s session. S&P BSE MidCap index jumped 1.75 per cent or 380 points to finish at 22,140.66, although S&P BSE Smallcap index added 1.29 per cent or 303 points to settle at 23,826.12. During intraday, Midcap index scaled fresh 52-week higher of 22,163.68 and Smallcap index 23,841.67. Market breadth was largely positive as 2,139 stocks sophisticated although 974 scrips declined.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have been a tad weak today. This can be attributed to profit-booking or offloading of positions. This does not disrupt the all round trend of the marketplace which continues to look bullish. We must be searching at 15900 as the next possible target. A very good help lies at 15300 and as extended as that level holds on a closing basis, the marketplace trend is in the hands of the bulls. Traders can look at dips or intra day corrections as an chance to add extended positions for greater targets.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Todays fall in BSE Sensex and Nifty 50 does not point at upcoming weakness. However, it does point towards an impending consolidation. If we look at the instant quick-term, the level of 15600 has been witnessing heavy contact writing this level continues to hold maximum Call OI. This level will continue to pose resistance for the instant close to-term. The key location of concern is the VIX which stands at one of its lowest levels of the current months the present levels had been seen only in the early 2020. So, there are possibilities of a spike in the volatility as nicely in the close to term. We count on the Index to oscillate in between 15100-15650 in the close to term.
Sameet Chavan, Chief Technical Analyst, Angel Broking
Today’s move cannot be termed as a fall. This is just a minor profit booking immediately after seeing a very good move lately and importantly immediately after reaching record highs. As of now there is no key reversal seen as we do not see any key resistance prior to 16,000. In in between minor profit booking must be treated as a regular phenomenon. As far as supports are concerned, 15,400-15,300 must be seen as important levels.
S Ranganathan, Head of Research at LKP Securities
Indices staged a clever recovery in late afternoon trade immediately after becoming in the red for the most aspect of the day. Broader markets as well displayed resilience as we saw intriguing getting emerge in state-owned Banks, Auto Ancillaries and in unlocking themes across sectors.
Vinod Nair, Head of Research at Geojit Financial Services
Ahead of the MPC policy, domestic marketplace continued its volatility with a mixed bias. Selling was witnessed in Financials, IT and FMCG stocks but it decreased towards the close of trading. Weakness across US and Asian markets also added to the adverse trend. PSU banks attracted purchasers in hopes that the government will quickly finalize the list for privatisation. In the policy, RBI is anticipated to focus on financial development by keeping the status quo on policy prices and making sure liquidity although maintaining an eye on the inflationary stress due to increasing commodity rates.