Nifty likely to sustain uptrend in medium term, support at 16500; how to trade on Thursday

BSE Sensex and Nifty 50 soared 2 per cent on Wednesday, a day before weekly F&O expiry, on the back of buying in index heavyweights such as Infosys, RIL

BSE Sensex and NSE Nifty 50 ended in the positive territory after a one-day blip. Benchmark indices soared 2 per cent on Wednesday, a day before weekly F&O expiry, on the back of buying in index heavyweights such as Infosys, Reliance Industries Ltd (RIL), Housing Development Finance Corporation (HDFC), and HDFC Bank among others. The 30-share index Sensex ended 1,040 points up at 56,817, while NSE Nifty 50 index jumped 312 points to 16,975.35. Broader markets performed in line with frontline indices. S&P BSE MidCap soared 418 points or 1.8 per cent to settle at 23,573, while S&P BSE SmallCap index added 1.5 per cent or 396 points to finish trade at 27,384. Bank Nifty surged 2.07 per cent. India VIX, the volatility index, fell 10 per cent to end at 24.12 levels.Market participants will keenly watch the US Federal Reserve meeting outcome.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Market seems to have come off from the turbulent phase of the last few weeks. While the conflict between Russia and Ukraine continues, other events such as cooling oil prices and US Federal Reserve’s decision on the rate front and commentary about the pace of future rate hikes are being eyed by the investors. The trend reversal in recent sessions is also due to the market being in an oversold territory in the past few weeks. Technically, on intraday charts, the Nifty maintains a higher high and higher low formation and now is heading towards 17000 and 17200. We are of the view that the current texture is likely to continue unless the index slips below 16750-16700 levels. Above this level, the Nifty could rise up to 17100-17200 levels. On the flip side, traders may prefer to take a caution stance if the index slips below 16750 and below the same, chances of hitting 16700-16600 would be brighter.

Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities

Nifty has staged a strong recovery with a combination of value and momentum. We expect the uptrend to sustain for the medium term. The March series expect limited downside with resistance placed at 17200-17300 levels; on the downside support is seen at 16500-16600 levels. Buying on Dips is advisable with focus on Cement, NBFC and Consumption space. Metals are expected to consolidate with high volatility.

Mohit Nigam, Head – PMS, Hem Securities

On the technical front key resistance levels for Nifty50 is 17,300 and on the downside 16,700 will act as strong support. For Bank Nifty key resistance level is 36,500 and on the downside 35,000 will act as strong support.

Palak Kothari, Research Associate, Choice Broking

Technically, Index has given breakout of prior swing high & given closing above the same which suggest northward direction in the counter. Moreover, the index has given closing above 21& 50 HMA which adds strength to the price. Momentum indicator MACD is trading with a positive crossover which adds strength for the next day. At present, the index has support at 16700 levels while resistance comes at 17000 levels, crossing above the same can show 17200-17300 levels. On the other hand, Bank Nifty has support at 34800 levels while resistance at 36500 levels.

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