Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities
Benchmark indices witnessed a volatile trading session. After a volatile trade, the Nifty closed 130 points higher, while the Sensex was up 410 points. Sectorally, almost all major sectoral indices were trading in the positive zone, but the defence index gained the most, gaining over 3.5 per cent.
Technically, after an early morning intraday rally, the market faced resistance near 24,950/82,000 and corrected sharply. However, it eventually managed to close above 24,650/81,200, which is largely positive. We believe the intraday market structure is non-directional, and as long as it is trading between 24,650 and 25,000, the range-bound structure is likely to continue. A breakout above 25,000/82,200 could take the market to 25,150-25300/82,700-83100.
On the other hand, if the market drops below 24,650/81,200, the sentiment could turn negative. On a fall below this level, the correction wave is likely to intensify. In such a scenario, the market could retest the levels of 24,500–24,400/80,700–80,400.
The Bank Nifty failed to surpass the 56100 level, which is negative. The strategy should be to reduce long positions at each resistance that exist at 55000 and 55400 levels. Support exists at 54400, 54100 and at 53800.
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