Markets slip for second consecutive day, how should you trade in markets tomorrow?

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Indian market closed in the red for the second consecutive day on Wednesday amid a choppy session. A bounceback in the last hour of trade, however, stemmed the losses which indicated an undertone of the bull trend still sustaining.

The S&P BSE Sensex slipped nearly 500 points from the previous close of 51,329 during the day, and closed flat with a marginal dip of about 20 points at 51,309 . The Nifty50 shut shop at 15,106

Among the key sectors, realty led from the top, consumer durables and auto stocks were other key gainers while profit-taking was visible in telecom, banks, capital goods and the public sector.

Experts are of the view that the index has good support near 14,800 and therefore any dips can be looked at as buying opportunities.

Here’s how experts believe markets are likely to trade on February 11

Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities

The benchmark index moved in a narrow range. Wednesday’s intraday activity has been lacklustre with a momentum of near 190/650 points. The global cues were tepid too. Most of the indices which were trading on a positive note, however, missed the follow through activity. Among sectors, realty and auto sectors were the top gainers while profit booking was seen in private banks, metal and selective infra stocks. Post the 1,500 points sharp rally on the Nifty, the index is trading within a narrow range, which indicates bulls may have started feeling discomfort to go further long near 15,250. But technically, a fresh uptrend rally is possible only after 15,270. However, trading below 15045 could possibly open one more correction wave up to 14880 levels.

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

Technical factors are aligned to support a range-bound market movement in the coming week. Therefore, The short-term traders should use the rally to exit while buying any dip towards the support level around 14,900-14,800. The level of 15,230-15,250 act as short-term resistance. The momentum indicators like RSI, MACD to show divergence, supporting our view that the market is likely to take a pause around this level and stay in a range

Rohit Singre, Senior Technical Analyst, LKP Securities

Going forward 15K will act as supreme support any dip near 15K mark will be again buying opportunity with keeping overall stop out levels below 15k and if index managed to hold above-said levels then again we may see some bounce in index towards 15,255-odd levels which is immediate and strong hurdle on the higher side.

Mudit Goyal, Research Analyst, SMC Global

Technically, Nifty is continuously trading in higher highs and higher lows on daily charts which is bullish in nature. On Wednesday, Nifty traded lower most of the time but recovered sharply in last hour of trade and formed a “Doji” candlestick, which indicates more upside is expected from current levels. We can see more volatility in the markets in coming days, but every dip should be considered as buying opportunity. Technically Nifty can test 15400-15500 levels in coming days and on the lower side, 15000 would act as a major support zone.