Daily Nifty Technical Outlook by Finvasia

On Friday, the markets picked up momentum in second half of the session to end at fresh record high on back of sharp gains in banking and oil stocks. Banking stocks witnessed sharp buying interest after biggest public sector bank SBI reported robust Q4 earnings result. The CNX nifty ended up 90 points at 7367, fresh record high settlement. Going forward, if nifty extends gain, it will take immediate resistance at 7400. And if it breaches this level, we may see continuation in uptrend with next resistance level to watch is 7475. On the downside, nifty will take immediate support at 7315 and below that at 7260.

Source: Finvasia Research

On Monday, Indian equity markets ended flat in a volatile trade session as investors turned cautious ahead of Narendra Modi swearing-in ceremony as 15th Prime Minister later in evening. The market had speculator opening on renewed buying interest in public sector stocks, with Nifty hitting 7500 marks. However, markets came under sharp selling pressure in second half of the session with 50-share index slipping more than 200 points from intraday high. Strong profit booking was seen across board especially in high beta stocks. CNX nifty ended the session volatile session 0.11% lower at 7359.05, after making a low of 7260. Though nifty managed to test its key resistance zone of 7450-7500; however, nifty met with sever selling pressure. Till the time nifty doesn't break 7500, we might see profit coming at every up move. On the down side nifty has strong support in the range of 7180-7200. And any correction to these levels would be good opportunity to go long in the market.

Source: Finvasia Research

On Tuesday, markets closed lower amid profit booking in financial and oil& gas sectors, as investors turned cautious ahead of May derivative expiry this week. CNX nifty ended the session 0.56% lower at 7318, declining for second straight session. Going forward, sentiments remain cautious due May F&O contract expiry on Thursday. Till the time nifty trades below its key resistance zone of 7450-7500, there is high probability that index would met with selling pressure on every rise. The index has immediate support at 7270 and breach below this level would induce further selling pressure with next key level to watch is 7100. On the higher side, nifty will take immediate resistance at 7380 and beyond that at 7460.

Source: Finvasia Research

On Wednesday, Indian markets settled in a positive terrain amid a lackluster trading session, ahead of May F&O derivatives contract expiry. Renewed buying interest in Cement and IT stocks helped the index to close higher, while profit booking by foreign investors after recent gains in indices capped upside in markets. CNX nifty ended the session 0.16% higher at 7329.65, first positive closing in last three sessions. Markets are expected to remain volatile due to expiration of May F&O derivatives contracts later in the day. Nifty has immediate support placed at 7270, a breach below this levels may take to 7220-7200 levels. On the upside any bounce back from current levels would met with immediate resistance at 7375 and above that 7420.

Source: Finvasia Research

On Thursday, markets slumped on May series derivative expiry as investors rolled over positions from May month to June contract series. Sharp decline in index heavyweight Infosys and continuous sell-off by foreign investors as they locked profits after recent rally in stocks weighed on the benchmark indices. CNX nifty ended the session 1.28% lower at 7235.60. For past couple of trading session, markets are witnessing profit booking. Going forward, nifty has immediate support at 7180-7200 levels and breach below which we can see further fall in market with next level to watch is 7130. On the higher side, index will take immediate resistance at 7290 and above that at 7345.

Source: Finvasia Research

On Friday, Indian equity markets surged to fresh record high on technical buying after benchmark indices breached key resistance level. Gains in oil& gas stocks and index heavyweight HDFC & RIL led the index higher. Benchmark indices ended at their record high with the CNX Nifty ending 1.46% higher at 7583.40 levels. Going forward, till the time nifty trades above 7500, the market is expected to trade with positive bias. On the resistance side, 7630 is key resistance level to watch and breach above this level will trigger further buying with next level to watch is 7690. On the downside, nifty will take immediate support at 7560 and below that at 7500.

Source: Finvasia Research

On Tuesday, markets staged a smart recovery in second half of the session to end with minor gains, helped by gains in defensive stocks such as technology and health care. Investors booked profit in recent outperformer stocks such as banks, oil & gas and cement, while recent underperformer sectors like IT and pharma saw buying interest. Foreign investors, who have been aggressively buying in the market during recent rally, bought shares to the tune of Rs 682 crore on Tuesday, in seventh session of buys. CNX nifty ended the session 2 points higher at 7656, the fourth consecutive record high closing. Technically, nifty now trades in uncharted territory and as long as it trades above 7500 levels, the trend would continue to remain positive.
Source: Finvasia Research

On Thursday, Indian equity markets surged higher in a choppy trading session, helped by gains in blue-chip companies such as HDFC Bank & HDFC. CNX nifty ended the session 0.30% higher at 7649.90. Overall sentiments remain cautious as investors waited new government’s budget due to unveiled in mid-July for more clarity of government’s action to revive economic growth recovery. Technically, as long market stay above 7500 levels, markets would trade with positive bias. Nifty has immediate resistance at 7670 and if it breaches this level, we may see further buying coming in the markets. On the downside, nifty will take immediate support at 7580 and below that at 7525.

Source: Finvasia Research

On Friday, Indian equity markets saw broad-based correction with several cyclist stocks witnessing sharp decline while defensive sectors like FMCG and Pharma stocks bucked the trend. Escalating tensions in oil rich Iraq hit the risk appetite of investors, who shifted their focus towards commodities. CNX nifty ended the session 1.40% lower at 7542.10, the biggest one day decline in last 4 months. Rising tensions in Iraq took wind out of the sail of domestic markets. Technically, the nifty has key support at 7400 levels and to confirm the bullish trend it should held this level, else we may see a sharp decline in the markets. On the higher side, nifty has immediate resistance at 7580 and above that at 7635. On the lower side, nifty will take immediate support at 7500 and below that at 7445.

Source: Finvasia Research