Sensex, Nifty end flat; here’s what experts say investors must do on Tuesday
As many as 15 components in the pack ended in the green with Larsen & Toubro gaining the most 3.43%.
Benchmark equity indices managed to end in the green on Monday after two sessions of decline as investors lapped up energy, IT and pharma shares. The 30-share Sensex settled 35.75 points, or 0.07%, higher 50,441.07.
Intraday, the index advanced as much as 667 points, but pared most of its gains tracking weakness in global markets. The NSE Nifty settled with a gain of 18.10 points, or 0.12%, at 14,956.20.
As many as 15 components in the pack ended in the green with Larsen & Toubro gaining the most 3.43%. It was followed by ONGC (up 2.96%), HCL Technologies (up 2.22%), NTPC (up 1.66%). On the other hand, Bajaj Finance, IndusInd Bank and UltraTech Cement each declined over 1%.
Going ahead, analysts believe that the market may see further fall until Nifty and Sensex cross 15,280 and 51,540, respectively. Here’s how experts believe the markets are likely to trade on Tuesday.
Ashis Biswas, head of technical research at CapitalVia Global Research Limited.
The market witnessed an attempt to break above the resistance level around the Nifty 50 Index level of 15100. However, the market failed to hold on to that level and gave up its early gain to ended marginally positive for the day. The expected levels of the market are likely to be in the range of 14,900 and 15,250, and it’s going to be crucial for the short-term market scenario to sustain above the 14,900 for Nifty50. The momentum indicators like RSI, MACD to further strengthen in favour of a positive outlook and advise the traders to consider a breakout above 15,250 as an opportunity to build fresh long.
Shrikant Chouhan, executive vice-president, Equity Technical Research at Kotak Securities
The market is following global cues, which are going highly volatile and based on the trend of the long term bond yields. However, it’s a corrective pattern to the vertical rally that almost all the indices across the world witnessed between February 1 to February 16. Today, Asian markets failed to hold initial gains and our markets also fell from the highs. We could see further decline until the market is not crossing 15,280/51,540 levels. On Tuesday, Nifty/Sensex would find the support between 14,860/14,890 (50,150/50,200) levels, however, on the dismissal of 14,860/50,150, indices could fall to 14,730/50,000 or 14,650/49,500 levels. The focus should be on the oil & gas related stocks.
Manish Shah, Founder, Niftytriggers
Nifty is in limbo as the market has not shown a clear direction in the last several days. To an astute pattern observer, it is a day with the narrowest range in the last 5 bars. Volatility is cyclical and it cannot be perpetual. Nifty needs to move above 15,150 and if the rally has to continue. Probabilities favour an up move as the pattern on higher highs and higher lows remain intact and a trend has higher probabilities of continuation rather than reversing. Immediate support for Nifty is at 14,860. A pop below this and there could be a decline towards 14,750-14,730. Guess we need to see where Nifty wants to go and then piggy-back the move to get a profitable joy ride.