Equity trade alert: Nifty outlook for Thursday

After a sharp rally of Tuesday’s session was followed by sideways action during Wednesday's session. After a marginal upside gap opening the benchmark indices remained range bound to close flat. Index Nifty, oscillated in a band of 50 points to end the session with negligible gain. Meanwhile, even the Nifty bank index displayed lethargic moves. In short, it was more of a consolidation session. The market breadth remained extremely strong right from the beginning of the session due to broad-based buying. On the sectoral front, we witnessed a mixed bag of the picture wherein NIFTY MEDIA (-0.85%) stocks remained the biggest laggards whereas NIFTY PSU BANK (+0.60%) counters gained the most. From the F&O space, JETAIRWAYS (-14.81%), CUMMINSIND (-4.38%) and INFIBEAM (-3.91%) were the worst performers.

The market breadth remained extremely strong right from the beginning of the session due to broad based buying. On the sectoral front, we witnessed a mix bag of picture where in NIFTY MEDIA (-0.85%) stocks remained the biggest laggards whereas NIFTY PSU BANK (+0.60%) counters gained the most. From the F&O space, JETAIRWAYS (-14.81%), CUMMINSIND (-4.38%) and INFIBEAM (-3.91%) were the worst performers.

Mehul Kothari, Senior Technical Analyst, IndiaNivesh told in a written statement, "Despite the range, bound movement, Nifty has again managed to close above 10880 which indicates that the triangle breakout is still intact and Nifty has a potential to sneak above 11000 mark. However, we also maintain our stance that 11200 still remains a very strong hurdle for the bulls. Thus we would advise traders to start booking profits once index arrives near that zone. As of now, the support of 10620 has now been shifted to 10690. Only a move below the same might dwell the ongoing momentum. For the coming sessions, 10925 and 10770 would remain an intermediate resistance & support respectively for the markets. Currently, we advise traders to trade with a positive bias but avoid any overleveraged positions and follow strict stop loss."

Standing in sync with Mehul Kothari; Anindya Banerjee, Analyst at Kotak Securities told Zee Business online, "Nifty is trading range-bound in between 10,700 to 10,900. Any movement above 10,900 can be an indicator of the bull run at the Indian indices or below 10,700 levels a run for the bear. However, I will bet on the same range movement of the Indian markets till elections are over. Much will depend upon the Indian Lok Sabha results."