Friday, Apr 26, 2024 | Last Update : 12:27 PM IST
Nifty could rally to 10970 or even 11040
Technically, while the Nifty has ended flat, the underlying short term trend remains down.
The market ended flat on Thursday after a volatile trading session mainly on account of weekly expiry of options.
The Sensex fell 80.32 points or 0.22 per cent to 36644.42, while the Nifty rose 3.25 points or 0.03 per cent to 10847.90.
The broader market ended higher. The BSE Small-Cap Index rose 0.15 per cent, while the BSE Mid-Cap Index gained 0.72 per cent. The market breadth was strong as 1,451 shares rose and 989 shares fell.
After showing a minor upside bounce from the lows on Wednesday, the Nifty was not able to show convincing follow-through upmove and closed on a flat note.
According analysts, a small body of negative candle was formed on Thursday with upper and lower shadow. This pattern indicates a choppy trend in the market, after a small rise.
"A decisive/sustainable move above 10920 levels could create more space for the upside in coming sessions," Nagaraj Shetti, Technical Research Analyst, HDFC Securities said
Technically, while the Nifty has ended flat, the underlying short term trend remains down. The Nifty would need to cross the immediate highs of 10920 for the short term downtrend to reverse. Immediate support is now at 10816, analysts said.
Technical View
"For the next few days, Nifty should trade in the range of 10770 and 10870. Below 10770, Nifty would correct to 10730 or 10630. Above 10870, Nifty could rally to 10970 or 11040. Technically, we are of the view that Index is at an inflection level and major activity on higher side is more likely in the near term," Shrikant S. Chouhan, Senior Vice-President Equity Technical Research Kotak Securities said.
Market View
"Gain in rupee, opinions like reduction in auto GST rate and improvement in economy led by festival demand did not pour adequate fuel in the market. On global front, prospective resumption of trade talks between US-China added some optimism in sentiment while any progress on dispute resolution will give a clear direction in the market, "Vinod Nair, Head of Research, Geojit Financial Services said.
