Market Outlook: Will bulls make a comeback today post five sessions of losses?

Investors and traders are curious about the direction Sensex and Nifty will take today after five sessions of losses.  Even as SGX Nifty indicates a higher opening, the bulls are likely to remain under pressure during the rest of session in absence of positive cues. SGX Nifty rose 97.50 points to 17,027 indicating a positive start today.

Singapore Nifty (SGX Nifty) is the Indian Nifty index that is traded in the Singapore Stock Exchange and is considered to be the first indication of the opening of the Indian market.

The rising number of Covid-19 cases in India and cues from the global market will dictate the course of the stock market today.

Parth Nyati, Founder, Tradingo said, "Technically, the Nifty has slipped below its important moving averages and psychological level of 17,000. However, 16900-16800 is another critical support zone that the bulls need to defend otherwise we can expect more pain in the coming days. On the upside, 17150-17300 will act as an immediate supply zone while 20-DMA of 17500 is a key hurdle. Bank Nifty has also slipped below 200-DMA. However, 36,000 is a psychological support level; below this, we can expect more pain towards the 35,000 level. On the upside, 36700-37000 is an immediate supply zone while 37500 is the next hurdle."

Share Market LIVE: Sensex, Nifty likely to open higher today

Deepak Jasani, Head of Retail Research, HDFC Securities said, "16816 could be the next support, while 17068 could be a resistance. Going by the high volumes on down days, FPIs seem to be aggressive sellers in the markets and hence if this continues, support levels may get broken one after the other. "

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said, "The overall structure suggests that the selling pressure can continue going ahead. Thus the index is expected to tumble further towards 16500-16400 in the short term. On the flip side, Tuesday's high of 17275 will now act as a crucial short term barrier.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "The overall chart pattern of Nifty indicate a decisive down trend. A move below the support of 16800 levels could open the door down to lower 16200-16000 levels in the near term. Any pull back rally could find resistance around 17100 levels."

Equity benchmarks extended losses for the fifth consecutive session on Tuesday, dragged down by heavyweights HDFC twins and Infosys amid a mixed trend in global markets.

Sensex tanked 703 points to end at 56,463. During the day, the 30-stock index tanked 1157 points to 56,009. For the majority of session, Sensex hovered around the positive territory. It gained nearly 300 points to 57,464. Nifty crashed 215 points to close at 16,958.