A volatile day for Indian markets but bulls helped benchmark indices to recoup some losses towards the close of the trade on Wednesday. The Nifty50 managed to close above 17700 levels while the S&P BSE Sensex fell over 250 points.

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Let’s look at the final tally – the S&P BSE Sensex was down 254 points to 59,413 while the Nifty50 fell 37 points to close at 17,711.

 

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On the sectoral front – buying was seen in utilities, power, public sector, metal, and realty space while profit-taking was visible in finance, FMCG, banks, capital; goods, and consumer discretionary.

On the broader market front – the S&P BSE Midcap index was up 0.6 per cent and the S&P BSE Smallcap index rose 0.54 per cent.

On the options front, the maximum Put OI is placed at 17000 followed by 17500 strikes while maximum Call OI is placed at 18000 followed by 17900 strikes.

“Call writing is seen at 18000 then 17800 strike while Put writing is seen at 17600 then 17650 strike. Option data suggests a trading range in between 17600 to 17900 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

India VIX moved up by 1.6% from 18.54 to 18.83 levels. Spurt in India VIX is giving a volatile swing and now it must cool down below 15-14 zones to continue the smooth ride of the market, suggest experts.

Experts are of the view that the market could remain volatile on Thursday as well where 17625-17590 will act as crucial support levels while 17800 followed by 17850-17900 will act as crucial resistance levels.

“Markets witnessed a highly volatile trading session, which was marked by weak global cues but benchmark Nifty once again took support near the 10 days SMA or 17600 and reversed sharply,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.

“The index has formed an inside candle pattern which indicates indecisiveness between bulls and bears. In the run-up to monthly F&O expiry, the market may continue with the narrow range activity. For day traders, 17800 -17850 would be the key resistance level while 17625-17590 could act as strong support,” he said.

We spoke to various experts and here’s is what experts advise investors to do when the market opens for trading:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited

The Nifty50 formed a small-bodied Bullish candle on a daily scale with long shadows on either side indicates tug of war between bulls and bears.

The index has to continue to hold above 17700 zones, for an up move towards 17850 and 18000 zones whereas support is placed at 17600-17580 zones.

Expert: Rahul Sharma, Co-Founder Equity99

The market is expected to remain volatile considering the expiry on Thursday. Going ahead on the expiry day, we are expecting some volatility to flow and support levels will be 17,575 followed by 17500- 17450, and on the upper side 17750 will act as immediate resistance followed by 17800-17850 levels.

Expert: Vinod Nair, Head of Research at Geojit Financial Services

The domestic market started on a very negative trend due to a global sell-off on Tuesday & high crude prices. Spiking US treasury yields and slowing economy were impacting growth stocks.

During the day, European & Asian markets recovered and crude prices stabilized. Indian growth-oriented sectors like Energy, Metals, and Pharma also recovered strongly but selling continued on other sectors like private sector banks & consumption.

Expert: Rohit Singre, Senior Technical Analyst at LKP Securities.

The Nifty index respected the support zone of 17600 and going forwards also it will be act as good support zone followed by 17500.

Any dips near the mentioned support zone can be a buying opportunity. The resistance is placed at the 17800 zones followed by the 17900 zone and traders can book profit around said levels.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)