The Indian market closed lower amid high volatility in the last hour of trade on Monday. Benchmark indices fell after three days of gain on heavy selling in IT stocks and weak trends in the global markets. Sensex declined 86.61 points or 0.16 per cent to end at 54,395.23. Nifty slipped 4.60 points or 0.03 per cent to close at 16,216.
Banking shares were the top sectoral gainers with their index rising 346 points on BSE. The BSE IT index was the top loser, falling 777 points to 28,020. However, market breadth was positive with 2,096 stocks ending higher against 1,328 stocks falling on BSE. 158 shares were unchanged.
Market cap of BSE-listed firms rose to Rs 253.30 lakh crore on Monday against Rs 251.59 lakh crore in the previous session.
Here's a look at what analysts said about the direction the market is likely to take today.
Prashanth Tapse, Vice President (Research), Mehta Equities
"If global cues support, then bulls will now look for acceptance above Nifty’s psychological 16,500 mark. The technical landscape for Nifty is likely to be positive as long as the benchmark trades above its biggest support placed at 16,027 and below the same, expect a waterfall of selling. Nifty’s major hurdle is seen at 16,500 and then all eyes will be on the 17,000 mark.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"After the upside breakout of the downsloping trendline in last week, Nifty showing minor weakness with range bound action suggests that the market could find strong support at the previous upside breakout area around 16,050 levels, as per change in polarity. This pattern also coincides with the positive chart movement like higher tops and bottoms on the daily chart, with new higher bottom formation near 16K mark. The short-term uptrend status of Nifty remains intact, and the market is taking temporary halt before showing further up move in the near term. Hence, the current range movement within 16,100-16,250 levels is likely to extended for the next session. A sustainable move above 16,300 could be viewed as strengthening of upside momentum."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
"We are of the view that the market is likely to continue with the range bound activity in the near future. For traders, 16,100 would act as a sacrosanct support level, while 16,300 would be the immediate resistance level. As long as the index trades above 16,100, the uptrend wave is likely to continue till 16,300-16,350 and below 16,100, the index could slip up to 16,050 level.”
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