Bank Nifty is consolidating in a broad range between 42,000-42,500 and a break on either side will have trending moves.
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Benchmark indices NSE Nifty and BSE Sensex ended Friday’s muted session flat. The NSE Nifty 50 settled at 17,624.05 and BSE Sensex rose 22.71 points or 0.04% to 59,655.06. In sectoral indices, Bank Nifty fell 151.5 points or 0.36% to 42,118.00, Nifty IT rose 184.95 points or 0.69% to 26,822.10 and Nifty Pharma rose 60.5 points or 0.48% to 12,545.75. The top gainers on Nifty 50 were ITC, TCS, Britannia, Wipro and Cipla while the top losers were HDFC Life, Tech Mahindra, Adani Enterprises, SBI Life and Tata Steel.
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“Mounting uncertainty in both global and domestic markets has kept Indian equities highly volatile. Weak signals of a softening job market and declining manufacturing activity in the US have raised fears of a possible recession. Despite the RBI MPC’s unanimous decision to pause rates, its minutes revealed that its members continue to hold concerns about high inflation. However, the market received some support towards the closing bell from the IT and FMCG sectors, facilitating its recovery,” said Vinod Nair, Head of Research at Geojit Financial Services.
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Where are NSE Nifty 50, Bank Nifty headed?
Bank Nifty may fall to 41500 if it fails to hold 42000
“Bank Nifty index witnessed a volatile trading session and it closed around the critical support zone of 42,000. The index is consolidating in a broad range between 42,000-42,500 and a break on either side will have trending moves. The index if it fails to hold the support of 42,000 on a closing basis will witness further downside toward the 41,500 level,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
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Nifty multiple supports seen in range of 17600–17500
“During the day the Nifty broke below 17570, however, it pulled back from the support zone of 17550 –17500 and closed above 17600. On the downside there are multiple supports in the range of 17600–17500 in the form of the 200- and 40-day moving averages which shall provide a cushion in case of a fall. The momentum indicators on the daily and hourly time frame are providing divergent signals and hence we shall assign more weightage to price action and wait for a decisive move beyond the extremes of the range 17500–17860,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
