Nifty may soon enter resistance zone

The market shed initial jitters over air strikes against Syria over the weekend and closed with gains. The Sensex ended 112.78 points, or 0.33 per cent, higher to settle at 34,305.43 while the Nifty-50 rose 47.75 points, or 0.46 per cent to close at 10,528.35. The BSE Mid-Cap Index rose 0.34 per cent and Small-Cap Index, 0.56 per cent, both outperforming the Sensex.

Among the sectoral indices on the BSE, Realty was up 1.82 per cent and Healthcare was up 1.11 per cent.

Technical view

Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “Broad-based buying in the second half pushed the Nifty towards its six weeks’ high beyond the 10,500 mark…Looking at Monday’s close, we will not be surprised to see Nifty entering the resistance zone of 10,580-10,640 soon. However, this time, it would be an opportunity for short-term traders to take some money off the table as it would be a daunting task for the index to conquer this wall in the ongoing run. Till then, intraday traders are advised to trade with a positive bias and try to focus on individual stocks. For the coming session, the support would be seen at 10,500-10,450 levels.”

Market view

VK Sharma, head-private client group & capital market strategy at HDFC Securities, said: “Better-than-expected first-quarter earnings failed to stir buying appetite on Wall Street, underlining concerns about lofty quarterly expectations for American corporations, high valuations and rising geopolitical anxiety in the Middle–East. Trump’s statement of ‘mission accomplished’ in Syria makes the street believe that there may not be more bombings. However, this is a developing story and we will have to watch it. The India Meteorological Department issued its first official forecast for 2018 monsoon rains. They are expecting monsoon to be normal for the third year on the trot. A strong support lies in the vicinity of 10,300 level for this week. Quarterly results will be the main driving force behind the prices in the near term.”
 

—Ashwin Punnen