Indian market snapped its two-day losing streak but witnessed some profit-taking at higher levels on March 8. The S&P BSE Sensex rose 35 points to 50,441, while the Nifty50 rose 18 points to close at 14,956.
Sectorally, action was seen in PSU bank, energy, media, metal, and IT stocks, while some profit-taking was visible in realty, FMCG, consumption, and financial services space.
“Domestic markets pared its early gains taking cues from weak Asian markets, falling US futures and rising oil prices. Oil & gas, PSU banks and metal stocks were the sectors in focus inching broader market,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Oil prices were parked near record highs following geopolitical issue in Gulf, while reports of the progress of PSU Bank privatisation tempered buying in PSBs,” he said.
Here is what experts suggest investors should do on March 9:
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
The Nifty, with a gap-up opening, broke out from a bullish wedge pattern on the hourly chart. However, it couldn’t sustain above the 20-hour moving average. As a result, the index witnessed consolidation for yet another day.
The daily chart shows that the index has broken out from a falling trendline and is forming a base above it. Also, a larger structure shows that trendline support is present on the downside.
Thus, the short-term bullish outlook remains intact. On the higher side, the high of 15,111 becomes a key hurdle.
Once that gets taken out, the index will be considered to have started a fresh move on the upside. On the downside, a crucial support zone is present near 14,860-14,800
Rohit Singre, Senior Technical Analyst at LKP Securities.
The index opened the day with gains but was not able to sustain on highs and after showing volatility, it closed the day at 14,959 with mild gains of 21 points.
The index has formed stiff resistance near 15,070, if the index crosses it, then some positive traction can be witnessed and we may see a good move towards the 15,150-15,240 hurdle zone. Immediate support for the Nifty is near 14,900-14,850.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited
The Nifty formed a small bearish candle on a daily scale with a long upper shadow, which indicates limited upside with the absence of direction. It negated its formation of lower highs-lower lows of the last two sessions.
Now, it has to cross and hold above 15,000 to witness an up move towards 15,150 and 15,250 zones, while on the downside, immediate support exists at 14,800 then 14,700.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.
The Nifty witnessed an attempt to break above the resistance level around 15,100. However, the market failed to hold on to that level and gave up its early gains to end marginally positive for the day.
The expected levels are likely to be in the range of 14,900 and 15250, and it’s going to crucial for the short-term market scenario to sustain above the 14,900 Nifty level.
The momentum indicators like RSI and MACD to further strengthen in favour of a positive outlook and advise the traders to consider a breakout above 15,250 as an opportunity to build fresh long.