Led by heavy profit booking in metal, banks, and financials, the Indian market gave up its intraday gains to, eventually, close on a negative note on Wednesday. The BSE Sensex slipped over 200 points, while Nifty50 fell below the 18250-level.

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The market analyst explains what would happen further on Thursday with the market witnessing profit booking but maintaining key support levels today. The market on Wednesday snapped two days gaining streak and had been trading weak four straight days before that.

 

"Index has again formed a bearish candle on the daily chart and witnessing a strong hurdle zone near 18325 zone trading below said levels, said Rohit Singre, Senior Technical Analyst at LKP Securities in his post market analysis note. 

He added, “we may see some more profit booking but if managed to cross said levels decisively then next move towards 18500-18600 zone can’t rule out so fresh long would be suggested above 18325 zone and on the other hand immediate support is coming near 18150-18000 zone.”

“Technically, the Index is trading in a bullish trend with Higher Highs and Higher Lows formation that suggests a bullish strength for the long term, pointed out Sachin Gupta AVP, Research of Choice Broking also said in his post market comment.

He further mentioned, “On a four hourly chart, the index has traded above the Horizontal Line, which indicates a further support zone. Furthermore, the index has been trading with a positive crossover of 9*21 Moving Average, which can be considered a Bullish Crossover which shows a Bullish movement in the counter.”

Meanwhile, Vinod Nair, Head of Research at Geojit Financial Services said, “Bleeding financial stocks dragged the market despite improvements in asset quality and favourable results. Stagflation worries and flare-up in US-China tensions forced global investors to trade cautiously ahead of the announcement of another batch of Q2 corporate earnings.”

Ajit Mishra, VP - Research, Religare Broking Ltd noted that the markets are closely watching earnings for cues and we’ll see the reaction to the numbers of select index majors in early trade on Thursday.

“Besides, volatility is expected to remain high due to the scheduled monthly derivatives expiry. Participants should continue with the stock-specific trading approach and maintain positive bias till Nifty holds 18,000 levels, Mishra further said.