Stock Market Today: Nifty solid support intact at 21,500, upmove likely today

The Fibonacci retracement indicates solid support around the 21,500 followed by 21,630 levels.

The US markets ended in the green after a day of consolidation. Back home on Wednesday, both Sensex and Nifty staged a sharp recovery in the afternoon trade and managed to end in the green, with the Nifty above 21,800 and the Sensex ending 267 points higher at 71,822. The Nifty Bank surged 1000 points from the day’s low to end at 45,908.

“Strong buying emerged at lower levels lifting market sentiments. Broader market outperformed with Nifty Mid/small gaining 1.0%/1.6% respectively. With result season almost over, the focus will shift to global cues and economic data points. Overall we expect the market to see a gradual up move on back of strong fundamentals,” said Siddhartha Khemka of Motilal Oswal Financial Services.

On the technical front, Om Mehra of Samco Securities, says, “Technically, Nifty’s daily chart showcases a bullish engulfing candle. Despite selling pressure from higher levels in early session Nifty was resilient to hold 21,500 levels.  The Fibonacci retracement indicates solid support around the 21,500 followed by 21,630 levels. As long as this pivotal threshold remains unviolated, the bullish trend seen in the index remains intact.”

Foreign Institutional Investors on Wednesday sold shares worth Rs 3,929.60 crore in the cash markets. On the other hand, flows from DIIs continued to remain positive as they added shares worth Rs 2,897.9 crore, provisional data from exchanges showed.

Top stocks to watch today are NMDC, Indiabulls Housing Finance, Muthoot Finance, Crompton Consumer, Utkarsh SFB. 

Advertisement