Profit-taking at higher levels dragged Indian indices on September 29 in line with the muted trend in global markets. The S&P BSE Sensex failed to hold on to 38,000-level, although the Nifty50 managed to close above 11,200 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 8.4 points to 37973 while the Nifty50 closed 5 points down at 11,222.
Sectorally, the action was seen in consumer durables, metals, energy, and consumer discretionary stocks while profit-taking was visible in telecom, utilities, public sector, and FMCG.
We have collated a list of view from different experts as to what investors should do on September 30:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The Nifty 50 index faced strong resistance at 11300 levels and couldn’t sustain at higher levels to end the day flat at 11224. On an intraday basis, the Nifty established a double or lower top formation near the 11283 levels.
The 50-day SMA level at 11305 and resistance of Fibonacci retracement at 11300 increased the selling pressure in the market.
Until the Nifty 50 index convincingly doesn’t cross the 11306 levels, players should not to be a buyer in the index. On Wednesday we suggest players be short on the Nifty.
Selling is advisable below 11180 for the target of 11100 or 11050 levels. Meanwhile for the Bank Nifty 21250 levels would be a big support, however, below that we may see a further weakness to 21000/20850 levels.
Of late on the back of global cues our market has become volatile, therefore traders need to be stock specific for the next few days.
Ajit Mishra, VP-Research, Religare Broking
The pause was on the expected lines after the recent bounce and existence of hurdle at 11,300 in Nifty. Going ahead, the upcoming auto sales numbers will be closely watched by the participants. Meanwhile, global cues will continue to dictate the trend. Traders should limit their leveraged positions and maintain positions on both sides.
Arun Kumar, Market Strategist at Reliance Securities
The Nifty 50 index formed an indecisive pattern with low volumes as compared to that of the past few days. Further, the near-term oscillators are displaying mixed signals.
Considering these factors along with an almost unchanged close, the index has to sustain above 11,090 to continue its rise. On the upside, it could headwinds around 11,300 – 11,350.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a fine upside bounce in the last couple of sessions, Nifty shifted into a consolidation with volatility on Tuesday and closed the day on a slightly negative note. A small negative candle was formed with lower shadow and the opening upside gap has been filled completely. This indicates minor profit booking at the highs.
The broader negative chart pattern as per the weekly chart is still intact and any upside bounce from here could be considered as a sell on rise opportunity in the near term.
The short term trend of Nifty is positive with range bound movement. Further consolidation or narrow range movement is likely in the next 1-2 sessions with volatile intraday swings.
The immediate support is placed 11180 and a sustainable move above 11250 levels could pull Nifty towards the next 11300-11400 range for the near term.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
Continuing with the positive momentum from the last couple of sessions, the Nifty opened gap up on September 29. On the higher side, however, the index stumbled near the 61.8% retracement of the recent fall.
The key Fibonacci level is near 11300 where the bears rushed in to check further upside. The crucial retracement level along with the 20 DMA & upper end of a reverse falling channel forms a strong resistance zone near 11300 – 11350.
Unless the Nifty crosses this barrier it is expected to slide down to 11000 in the short term. On the way down, a gap area of 11099-11072 will act as an intermediate support zone
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
