Nifty hints at consolidation with buy-on-dip structure

At close, the Sensex was up 102.93 points, or 0.15%, at 69,928.53, and the Nifty gained 28 points, or 0.13%, at 20,997. All sectors including PSU bank, FMCG, capital goods, power, metal and realty ended in the green, except for Pharma.

What Are The Experts Saying?

“The market crossed 70,000 levels today, while the broader market outperformed the main indices. However, profit booking was evident at higher levels as traders anticipated clues from tomorrow’s significant data releases on inflation from the US and India, as well as the IIP,” said Vinod Nair, Head of Research at Geojit Financial Services.

While inflation in the US is predicted to remain stable, the market anticipates a rise in domestic inflation. The better-than-expected US job data and a moderate increase in US bond yields from the recent lows, however, also encouraged investors to book profits at higher levels, Nair said.

The analyst further said that investors will be closely watching the upcoming FOMC meeting tomorrow for clues about potential future rate cuts while expecting to keep rates the same this time.

Ajit Mishra, SVP – Technical Research at Religare Broking recommended traders to continue with a “buy on dips” approach and stay focused on stock selection. “We feel positive cues from the US markets could trigger the next leg of the up move, so keep a close watch on their performance.”

Siddhartha Khemka of Motilal Oswal Financial Services expects strong domestic economic growth along with return of FIIs to drive the market higher in the coming months. However, Khemka said that markets may consolidate in a range for the next few days given global central banks are set to announce policy outcome this week.

“Further, the US and India inflation along with the later’s manufacturing data to be released on Tuesday would keep investors cautious,” he noted.

What Do The Nifty 50 Charts Indicate?

Rupak De of LKP Securities said the Nifty50 traded mostly sideways as traders stayed on the sidelines at the beginning of a data-packed week. “There’s a strong resistance at 21,000, with call writers actively building positions. A decisive breakthrough above 21,000 is necessary to resume the uptrend. Until then, it’s anticipated that the market will consolidate within a broader range.”

According to Deepak Jasani, Head of Retail Research at HDFC Securities, Nifty formed a fresh new high and made a higher bottom compared to the previous session. Nifty remained in a 97-point range through the day and ended with small gains. Jasani expects Nifty to stay in the 20850-21050 band for the near term.

The overall positive chart pattern of Nifty remains intact, said Nagaraj Shetti of HDFC Securities. “There is a possibility of Nifty continuing its upward journey without showing any major breakdown in the near term. A decisive move above 21,000 mark could open the next upside target of 21550. Immediate support is placed at 20850 levels,” he said.

“We are seeing consolidation in Nifty with a positive bias and it has formed an immediate support base around the 20,700-20,800 zone,” Mishra said.

Key support levels for Nifty Bank

The Bank Nifty index demonstrated commendable performance in today’s session, primarily attributed to the performance of PSU banks. According to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, Nifty Bank encountered resistance at higher levels, but the overall sentiment remains bullish, supported by a robust foundation at the 46800 level.

“The index is currently adopting a buy-on-dip strategy, suggesting that any declines towards the specified support zone present opportunities to initiate long positions. A significant breakthrough and closure above 47500 are anticipated to trigger additional upward momentum towards the 48000 mark,” Shah said.

Key support levels for Nifty Bank to look out for are at 47,000-47,200, while resistance levels are observed at 47,500-47,800, according to Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy.

Wipro shares slip in trade

Shares of Wipro fell on Monday after the IT services company announced the resignation of its chief growth officer (CGO) Stephanie Trautman, the latest in a string of top level exits in the company.

Foreign brokerage firm Morgan Stanley mainted its ‘Underweight’ call on Wipro, with a share price target of Rs 370 following the CGO’s resignation.

The senior management exits over the past 12 months were a great cause of concern for investors, the global brokerage said. The chief growth officer had a pivotal role in managing the large-deal team. The team’s primary focus was on scouring large deals for the company via market advisers and consulting various different channels.

As the chief growth officer, Trautman used to lead “Wipro’s relationships with hyper-growth partners, provides market intelligence through advisors and analysts, enhances Wipro’s brand awareness and develops sales capabilities,” MS said.

Here are the stocks to watch out for ahead of Tuesday’s session:

Infosys appointed Jayesh Sanghrajka as Chief Financial Officer (CFO) of the company with effect from April 1, 2024. Nilanjan Roy has resigned as the CFO of the company w.e.f. March 31, 2024.

SpiceJet Board meeting to consider seond-quarter results and raising of fresh funds has been adjourned to December 12, 2023, the company said.

Mankind Pharma likely to see change of hands up to 7.9% equity via block deal. Total block deal likely at ₹5,649 crore, with base size at ₹4,935 crore.

REC India has entersed into €200 m loan agreement with Germany’s KfW Development Bank.

Dixon Technologies‘ arm Padget Electronics will manufacture IT Hardware products (Laptops & Notebooks) under PLI 2.0 Scheme for Lenovo.

RVNL-URC JV emerged as the Lowest Bidder (L1) for a project worth ₹543 crore of Madhya Pradesh Metro Rail Corporation.

Vivek Anand has resigned as Group CFO of DLF with effect from February 29, 2024. Ashok Kumar Tyagi, Managing Director of the company will now have oversight of the Group Finance in addition to his current responsibilities.

BLS International has been awarded contract for outsourcing Consular, Passport, and Visa services by the High Commission of India (HCI) in Canada. The contract encompasses operations at HCI in Ottawa and Consulate Generals of India (CGIs) in Toronto and Vancouver.