Sensex gains for 2nd straight day, Nifty atop 17300 on F&O expiry; uptrend in Nifty possible above 17425

BSE Sensex and NSE Nifty 50 ended in the green on weekly F&O expiry day amid volatility. BSE Sensex ended 157 points or 0.3 per cent up at 58,222, while NSE Nifty 50 gained 58 points or 0.3 per cent to settle at 17,332. Index heavyweights such as ICICI Bank, Infosys, L&T, Axis Bank, Reliance Industries Ltd (RIL), and ITC among others contributed the most to the indices’ gain. Broader market indices outperformed the equity frontliners. S&P BSE MidCap index gained 1.13 per cent or 283 points to end at 25,424, while S&P BSE SmallCap index jumped 1.3 per cent or 373 points to settle at 29,096. India VIX, the volatility index, fell 1.3 per cent to end at 19.32 levels. Bank Nifty gained 0.4 per cent to finish at 39,283.

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Weakness in European indices and SGX Nifty slipping into the red prompted investors to cut their bullish bets. But key domestic benchmarks still ended in the green thanks to traders betting big on IT, metals & realty stocks. However, the inflationary concerns worldwide and central banks hiking interest rates persistently has spooked markets and kept investors on tenterhooks on worries of a global slowdown. On daily charts, the Nifty has formed a small bearish candle, which is indicating temporary weakness. However, the medium term sentiment is still bullish. A fresh uptrend is possible only after the breakout of 17425 level and above the same, the index could hit 17500-17550 levels. On the flip side, below 17425 the index could slip till 17200-17150.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty started to gap up and remained volatile during the day. On the daily chart, a bullish island reversal pattern has been formed. The trend is likely to remain positive over the short term. On the lower end, 17250 may act as crucial support. On the higher end, the index may extend its rally till 17600-17700.

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Om Mehra, Technical Associate, Choice Broking

Technically, the Nifty has formed Doji candle in the daily chart suggests indecisiveness among traders. Index needs to move above 17500 for a directional move. However, Nifty has failed to close above 50 DMA which would be worrisome for the bulls. Indicators such as RSI remained in the neutral zone while Bollinger band indicated 17500 would remain strong resistance for next trading day. OI Data indicates, on the call side the highest OI witnessed at 17500 followed by 17600 strike prices while on the put side, the highest OI was at 17000 strike price. In the Banking sector Axis Bank and ICICI Bank have supported the index but HDFC twins underperformed. Bank nifty has support at 38500 levels while resistance is placed at 40000. We do continue to remain cautious on markets near term given most risks are skewed to the downside majorly from the central bank.

Vinod Nair, Head of Research, Geojit Financial Services

The Indian market is maintaining its resilience despite mixed cues from global equities and surging oil prices. Both domestic and foreign investors are supporting the rally. The market was also bolstered by expectations on Q2 results session, with improvement in sectors like Metal, IT, and Reality. However, the decision of OPEC to significantly reduce output has increased oil prices, which is slightly unfavourable for importers like India.