Nifty formed a small bodied bearish candle on the daily chart and closed flattish but was hovering near the highs of the previous session.
Nifty moved in a very narrow range and closed the day at 17546 with minimal loss, forming a small bearish candle on the daily chart.
After making a smart recovery in the previous session, Benchmark indices had a volatile day, with a rally in realty, auto, IT and metal names helping indices to narrow losses at end of the day.
Despite hopeful signs in the global markets, domestic main indices traded in a narrow range to give away its early gains in today’s volatile session. However, the broad market was robust barring banks, all major sectors were in demand and media, metals and realty outperformed.
Realty stocks were in focus owing to an increase in property registrations in September while easing jitters over the Chinese economy bolstered metal stocks. Investors traded cautiously awaiting the outcome of the FOMC meeting that will clear the air regarding Fed’s tapering plans. Federal Reserve meeting concludes on September 22.
Nifty has support around 17500/17430 and any dip near the level will be a buying opportunity, with an immediate stop below 17450 and resistance at 17600/17660 zone.
One can lock trading long gains around the said level. Overall range is still in between 17300 and17800 and either side breakout will decide the final direction.
Nifty remains in a medium term uptrend for targets of 18000 and above. Any meaningful correction is a good opportunity to buy. Support for the September series is seen at 17325, while resistance is expected at 17600/17770.
A breach of 17325 on the closing basis is expected to result in selling pressure to sub 17000 level. Auto and energy stocks traded with a positive bias, while metals are expected to consolidate before resuming uptrend.
After a robust pullback rally, Nifty witnessed a narrow-range activity near the 17600 resistance level. After a muted opening, Nifty hovered in the 17525/17610 range.
Intraday trading setup suggests 17600/17625 will act as the key resistance level for the day traders and below it, a quick intraday correction till 17500/17450 is not ruled out.
Except bank and FMCG, all sectoral indices ended in the green, with realty index rising over 8 percent. BSE midcap and smallcap indices rose 1 percent each.