Strong resistance seen at 10,700

Benchmark indices opened flat on Thursday but entered positive territory towards the second half and were able to sustain modest gains. The Sensex rose 118.55 points, or 0.34 per cent, to settle at 35,260.54.  The Nifty 50 rose 40.40 points, or 0.38 per cent, to settle at 10,616.70.

Among secondary barometers, the BSE Mid-Cap Index rose 0.74 per cent to 14,992.48 and Small-Cap ended flat at 14,548.04.

The Nifty Bank was supported by both private and PSU banks. The Nifty PSU once again delivered good gains but ended on a modest note. All sectoral indices ended in the green except the Nifty FMCG.

The market remains unchanged at a Confirmed Uptrend.

Technical view

Mustafa Nadeem, CEO, Epic Research, said: “On daily chart it was a narrow range day considering the current volatility…We had a swing bottom at 10,030 from where the Nifty rebounded to make swing high of 10,680. There is a strong resistance at the 10,700-10,750 range, from where the Nifty last fell and the bears were in control.

“The Nifty is currently forming a W pattern where the prices are currently consolidating at the upper trading range. The index has strong support at 10,500-10,525 levels and resistance comes at 10,700-10,720 levels. A breach beyond these points would have higher resistance at 10,801 levels on the higher side and 10,350 on the lower side.”

Market view

VK Sharma, head-PCG & capital markets group, HDFC Securities, said: “Weakness in financials and FAANG stocks, led by Apple, weighed on the US indices. Indices closed lower for the fourth session on the trot, its longest losing streak in three months.

“Indian market shrugged off negative cues and closed with flourish. Prospects of stronger currency, lower interest rates coupled with short-covering helped realty stocks to outperform the market. Banking and finance sector stocks were in the limelight as we expected.

“The Bank Nifty has broken out above its 200-day moving average and managed to make a higher top.

“Foreigners recognise the improving prospects of Indian bonds and have lapped up $1.3 billion worth of bonds in the last nine sessions.

—Ashwin Punnen