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Sensex ended flat at 49,492 (PTI)
Sensex ended flat at 49,492 (PTI)

Nifty pauses, 14600-14700 seen strong hurdle

  • Among the heavyweights, RIL fell nearly 1% while HDFC declined 2.7%

Indian stock markets ended flat today, weighed down by losses in HDFC and Reliance Industries. The Nifty ended flat at 14,564 and the benchmark Sensex was down about 25 points to 49,492. At day's high, Sensex rose to 49,795 while Nifty to 14,653 before giving up gains on profit-taking. The Nifty bank index gained 0.6% and the public sector banking index rose 3%. Infosys shares ended up 1.3%.

Elsewhere, Tata Elxsi Ltd shares rose 13.62%, hitting a record high after reporting a surge in December-quarter profit and revenue.

"Nifty saw intra-day volatility and poor advance decline ratio. Risks of sharp and sudden selloffs at high levels remain. One needs to be careful and keep long positions under control and keep taking profits on trading and some investment positions. 14382-14432 is the crucial support band for the Nifty in the near term," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Among the heavyweights, RIL fell nearly 1% while HDFC declined 2.7%.


Here is what analysts said on today's market performance:

Sneha Seth, derivatives analyst at Angel Broking

“In derivatives segment, we hardly saw any open interest addition in both the indices. The call strikes of 14600 and 14700 added huge positions, which suggests 14600-14700 to act as a strong hurdle. On the flip side, decent build-up was seen in 14500 strike. Maximum open interest concentration for tomorrow’s weekly expiry is placed at 14600 call and 14500 put strikes. We have been mentioning that the market looks a bit overbought and we also saw decent profit booking in today’s trade. Considering today’s development in Nifty, we expect further selling going ahead. Hence, traders are advised avoiding any aggressive directional bets in index and prefer trading in individual counters with is giving trading opportunity on both the sides."

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

“Nifty has achieved a long range target of 14640 and is now expected to witness increased volatility going ahead. For traders, 15100 can be expected on the higher side with momentum support seen at 14280. Aggressive buying is advisable below the 14000 mark. Banking and Energy stocks are expected to outperform in the near term."

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited

"Today, the market failed to show resilience to stay above the level of 14600 and we saw profit booking in the market. As of now, the short-term technical condition of the market shows that the expected range of the market is likely to be between 14380 and 14680. While it is subject to further price action evolution, our research suggests it is prudent to wait for a decisive breakout above 14680 and technical factors to improve before going long in the market. As such we retain our cautious stance and advise the traders to refrain from building a fresh buying position, until we see further improvement and breakout above 14680."

Vinod Nair, Head of Research at Geojit Financial Services

"Following positive global cues and ease in inflation for the month of December, the market opened with good gains. However, profit-booking was triggered due to 1.9% contraction in factory output, premium valuations and cautiousness ahead of Union Budget."



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