Nifty remains indecisive even as D-Street continues to post record close; check support, resistance levels

BSE Sensex and Nifty 50 extended their winning run to the fourth consecutive session on Tuesday, helped by buying in index heavyweights such as ICICI Bank, HDFC Bank and Asian Paints. Both the indices ended at record closing highs, BSE Sensex at 52,773.05 and Nifty 50 index at15,869.25. During intraday, Sensex scaled a fresh record high of 52869.51, while Nifty surged to a new peak of 15,901.60. The market breadth was positive as 1,943 stocks advanced and 1,280 scrips declined. The broader markets outperformed equity benchmarks. S&P BSE MidCap ended at 22,907.41, up 136.29 points or 0.60 per cent. The S&P BSE SmallCap index settled 110.85 points or 0.44 per cent up at 25131.70. India VIX, the volatility index, fell 0.74 per cent to end at 14.61 levels, lowest since February 2020.

Rajesh Palviya is Vice President– Research (Head Technical & Derivatives) at Axis Securities

On the daily chart the index has formed a “Doji” candlestick formation indicating indecisiveness amongst market participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 15900 level it would witness buying which would lead the index towards 16000-16200 levels. However if index breaks below 15800 level it would witness selling which would take the index towards 15650-15500. Nifty is trading above its 20 day SMA which indicates positive bias in the short term. Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating positive bias

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

Markets continued inching higher and closing at their new lifetime highs. However, it has continued to show loss of internal strength. RSI stays overbought; it continues showing bearish divergence on the chart. 15900 and 16000 saw heavy call writing indicating that the NIFTY may find it difficult to move past these levels. The markets also continued to show classical distribution signs at current levels hinting at the increased importance of protection of profits at higher levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty finally managed to hit the 15900 level but ended up closing a tad below. The zone of 15900-16100 is a resistance block and traders should be cautious around these levels. A buy on dips approach would be a prudent form of trading this patch. 15700-15750 is a good support for the index and as long as that does not break, we are in the territory of the bulls!

S Ranganathan, Head of Research at LKP securities

Bulls were firmly in control today as FMCG & Paint stocks were sought after with the broader market also displaying renewed buying interest in high-quality Midcap names across sectors. Selective themes like Infra, Paper & MFI were in action today amidst high volumes on positive news flow.

Vinod Nair, Head of Research at Geojit Financial Services

Indian bourses continued its gaining streak tracking optimism from global peers, which is despite the rising inflation concerns. The global market is eagerly awaiting the two-day Fed policy meeting’s decision to see if the Central Bank would signal any change in policy. While domestic CPI jumped to 6.3% in May breaching the RBI’s comfort zone on account of higher food & energy prices, which is expected to ease due to the opening of the economy.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed a lackluster movement and an attempt to overcome the resistance level around the Nifty 50 Index level of 15900. While a breakout above 15900 is the key factor from a short-term perspective, Anything above this level is important for the market to gain momentum, which could lead to an upside projection till 16200 levels. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook and advise the traders to consider a breakout above 15900 as an opportunity to build fresh long position.