Benchmark indices snapped three day losing streak on Friday and ended higher after RBI’s monetary policy committee kept the key rates unchanged. While Sensex ended 412.23 points or 0.70% higher at 59,447.18, NSE Nifty 150 shut shop 44.80 points or 0.82% up at 17,784.30. All the sectoral indices ended in the green with FMCG, metal, power, oil & gas indices up 1-2 percent. BSE midcap and smallcap indices rose nearly 1 per cent each. Markets focus has shifted from RBI policy meet outcome to Q4 earnings season. Rangebound movements is likely to continue in markets, according to analysts. For the bulls, 17,550 would be the key support zone, above which Nifty could hit the level of 17900-18000.
Vinod Nair, Head of Research at Geojit Financial Services
“Market was cautious during the last 2-3 days ahead of the RBI meet and its future policy stance. Measures being in-line with market expectations led to a relief rally. The focus has shifted to the Q4 earnings season, which will start next week, initiated by the IT & Banking sector. Outlook for the banking sector is robust due to rapid bounce in credit growth & improvement in balance sheet while preview for IT is mixed as Q4 is seasonally weak.”
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
“Markets snapped its 3-day losing streak as investors resumed buying after the RBI in its monetary policy announcement said it would continue with its accommodative stance and stated inflation would cool going ahead. Technically, after a short-term correction, on weekly charts the Nifty has formed a Doji candlestick formation which clearly shows indecisiveness between the bulls and bears. The market took the support near the 10-day SMA and has formed a promising reversal formation which indicates continuation of a pullback rally in the near future. We are of the view that the range-bound texture is likely to continue in the short run. For the bulls, 17,550 would be the key support zone, above which the index could hit the level of 17900-18000. On the flip side, if the index closes below the 10-day SMA or 17,550, it could hit 17,400-17,300 levels.”
Rupak De, Senior Technical Analyst at LKP Securities
“The benchmark Nifty found support around the previous session’s low resulting in a positive close for the day. However, on the higher end, the Nifty found resistance around the lower band of the rising channel. Going forward, the trend may continue over the near term. On the higher end, the index may find resistance at 18,000 whereas, on the lower end, support exists at 17,650.”
Deepak Jasani, Head of Retail Research, HDFC Securities
“Nifty rose for second week in a row though formed a doji after a rise on weekly charts suggesting caution at higher levels. Q4 results season will start from Monday and the market’s focus will shift to individual stocks. The RBI has turned mildly hawkish and this could impact the valuations in the markets over time. Nifty could now take support from 17,522-17,560 band and face resistance from 17,900-17,921 band over the next few days.”
