Closing Bell: Sensex, Nifty trim intraday gains amid selling in metal, energy stocks

Nifty opened with a gap-up and extended its gains through the session to hit an intraday high of 24,262. However, profit booking at higher levels dragged the Index lower, eventually settling at 24,056, up 0.14%.

During the day, Nifty moved well past its 100-day EMA but profit booking at higher levels led to the Index failing to yet again give a decisive close above the same. This is the fourth instance in the last six sessions, where the Nifty failed to close above the 100-day EMA. Having said that, the index found strong support in the 23,780–23,820 zone for the second consecutive week and rebounded sharply, highlighting buying interest at lower levels. The DI+ has crossed above the DI- on the ADX indicator, indicating that bulls remain firmly in control.

The broader markets underperformed the benchmark indices and closed in negative territory. Both the Midcap and Smallcap indices formed small-bodied bearish candles on the daily chart. Despite today’s weakness, both indices continue to trade above their key moving averages, suggesting that the near-term bullish trend remains intact.

The market breadth turned weak as the advance decline ratio was titled in the favour of bears at day’s close. A total of 336 out of the Nifty 500 stocks ended in red.

Going ahead, the immediate resistance for Nifty is placed in the 24200-24250 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24400, followed by 24600 in the short term. On the downside, the immediate support for Nifty is placed in the 23900-23850 zone.

Bank Nifty View

Bank Nifty also opened on a positive note and moved higher before profit booking at higher levels dragged the Index lower to close at 58,177, up a modest 0.05%. The index formed a small-body candle with a minor upper wick, reflecting Index’s inability to sustain at higher levels. However, the broader trend remains constructive as Bank Nifty recently gave a consolidation breakout and continues to trade above its key short and long-term moving averages. Additionally, the ADX is gradually moving higher, signalling strengthening trend momentum.

Going ahead, the immediate resistance for Bank Nifty is placed in the 58600-58700 zone. Any sustainable move above this zone could result in Bank Nifty extending its up move towards 59100, followed by 59500 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 57700-57600 zone.