Benchmark indices made moderate gains as bargain hunting helped them make a comeback after three consecutive days of decline. The Sensex gained 141.27 points, or 0.42 per cent to settle at 33,844.86 while the Nifty-50 rose 37.05 points, or 0.36 per cent to 10,397.45. IT stocks gained after Nasscom reportedly issued a cautiously optimistic outlook for the sector. The BSE Mid-cap and Small-cap indices fell 0.05 per cent and 0.17 per cent. Among the sectoral indices, the BSE IT Index was up 2.2 per cent while Healthcare and Metal were down 1.2 per cent each.
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “With today’s (Wednesday’s action), we do not see any major change in the price structure. Who knows, this might be the lull before the storm. Considering the expiry factor, such range-bound day was quite evident as we can see the Nifty getting stuck in a small band of 200 points i.e. 10,500–10,300…we can now see an addition of yet another indicator, along with bearish price structure; providing credence to the possible downside in days to come. The ‘RSI-Smoothened’ on daily chart has slipped below the 30-mark, which generally can be treated as an alarming sign. Last time, this kind of scenario was seen a few days ahead of the ‘demonetisation.’
For the coming session, 10,456-10,500 would continue to act as immediate resistance; whereas 10,347-10,300 remains an important support zone.
Jayant Manglik, president, Religare Broking, said: “The equity benchmark indices managed to end Wednesday’s session in the green, helped by positive Asian cues and some short covering.
“We expect the Indian equities to remain range-bound in the coming sessions. Domestic macro data and global developments will dictate the further course of the market in the near-term... Investors should continue to focus on quality stocks on dips.