HDFC Securities says sustainable move above 14900 could open a sharp upside for the market; Immediate support is placed at 14600
HDFC Securities says that those Indian benchmark equity indices gained for the third straight day on April 08 – the longest such streak in a month - however, weekly F&O related volatility dragged the indices lower from their intraday highs. Nifty after rising in the initial part of the day, fell post 1335 Hrs. At close, the NSE Nifty 50 index rose 0.4% to end at 14,873
HDFC Securities says that those Indian benchmark equity indices gained for the third straight day on April 08 – the longest such streak in a month - however, weekly F&O related volatility dragged the indices lower from their intraday highs. Nifty after rising in the initial part of the day, fell post 1335 Hrs. At close, the NSE Nifty 50 index rose 0.4% to end at 14,873. Volumes on the NSE were higher than recent averages. Among sectors, Metals, IT and Oil & gas were the main gainers, while Banks were the main losers.
HDFC Securities says that Equity mutual funds witnessed their first inflow in nine months in March even as benchmark indices remain flat after scaling record peaks in February. Investors pumped in a net Rs 9,115.1 crore into equity and equity-linked schemes in March compared with an outflow of Rs 10,468 crore in February.
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HDFC Securities says that Nifty rose during the day but gave up a big part of their gains towards the end. In the result it has formed a long legged doji post a minor rise. This suggests mild caution on the part of participants. On upmoves 14984-15050 band could provide resistance to the Nifty while 14716-14821 band could provide support.
HDFC Securities says that after witnessing a sharp weakness on Monday, Nifty shifted into a consolidation with volatility on Tuesday and closed the day higher by 45 points. After opening on an upside gap of 100 points (body gap, not a western gap), Nifty started with intraday weakness from the highs in the early part of the session. Upside recovery has witnessed from the lows and Nifty closed the day on an upside recovery note. The crucial upper resistance of 14880 (resistance as per change in polarity) remains intact and the weakness which started from near the hurdle seems to be halting now. Hence, one may expect Nifty to move up and retest the crucial upper resistance again in the coming sessions.
HDFC Securities says that Nifty on the weekly chart is placed at the weekly 10 period EMA at 14640 and is showing upside recovery from the said support. HDFC Securities observes a broader high low range movement in the Nifty over the last 5-6 weeks around 15300-14300 levels. Hence, the market is within a range and immediate resistance is placed at 14900.
Conclusion: The short term trend of Nifty remains range bound. The market is witnessing an alternative movement of up and down over the last four sessions. As per the present set up, one may expect Nifty to retest the crucial overhead resistance around 14880 levels in the short term, before showing another round of weakness from the highs. A sustainable move above 14900 could open a sharp upside for the market. Immediate support is placed at 14600.
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