Nifty likely to be in the range of 10750-11100

The market snapped two-day losing streak ending with decent gains on Wednesday following Saudi Arabia stating that half of production cut  had been restored.

The Sensex rose 82.79 points or 0.23 per cent to 36563, while Nifty gained 23.05 points or 0.21 per cent to 10840.65.

The market breadth was even with 1,244 shares rose and 1,240 shares fell. The S&P BSE Small-Cap Index rose 0.30 per cent and the S&P BSE Mid-Cap Index gained 0.39 per cent.

“Nifty closed in the positive territory in the last trading session however it has closed below the uptrend line resistance which is not a positive sign in the near term. Now, on the upside the immediate resistance is pegged at 10950 and till those levels aren’t taken off the overall trend remains sideways to negative. Nifty has broken the uptrend line support and the next support comes to 10700 which is the next target,” said Jay Thakkar, CMT Head Technical and Derivatives Research — AVP Equity Research, Anand Rathi Shares.

According to analysts, Nifty saw elevated volatility on the back of crude oil and global geopolitical tensions. Despite being the leader in GDP growth we have slipped to 5 years low. Nifty saw a sharp sell-off but it is quite the unusual day. A sharp decline in Volatility while Nifty opening above the previous day low and sustaining within a very short range making an inside day.

Technical View

“For now the Nifty is likely to be in the range of 10750 — 11100 and that is what the range has been since August. So unless we don’t break this range we are oscillating and its market for option writers. In this kind of range, patience will be rewarded and anxiousness will erode capital,” Mustafa Nadeem, CEO, Epic Research said.

Market View

“The market was range bound with a mild positive bias backed stability in oil prices with signs of faster restoration in Saudi production. Further rupee gained and 10yr yield declined which added respite to the sentiment. Auto was range bound as the sector is unlikely to get any interim relief by way of GST cut due to concern of further short fall in tax collection and challenges to meet fiscal target,” said, Vinod Nair, Head of Research, Geojit Financial Services.