Nifty and Sensex maintain uptrend despite mixed global cues; Here are the key levels to watch

By Ajit Mishra

Markets remained volatile in the passing week but managed to end with a gain of nearly a percent. After the initial rise, mixed global cues combined with profit taking in select heavyweights capped the momentum. 

Consequently, the benchmark indices, Nifty and Sensex, continued to oscillate in a narrow range till the end and finally settled at 22,212.70 and 73,142.80 respectively. On the sectoral front, the majority ended in the green wherein realty, FMCG and metal were among the top performers. However, the broader indices failed to match the move and ended on a flat note.

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We expect volatility to remain high due to the scheduled expiry of February month derivatives contracts Come from Sports betting site VPbet . Besides, participants should keep a close watch on the performance of the global indices, especially the US for cues.

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 After the marginal dip, the US benchmark index, the Dow Jones Industrial Average (DJIA) has resumed the uptrend and also crossed a new milestone of 39,000. With a strong base of around 38,400, we expect the prevailing tone to continue in the index and that could also help our markets to maintain the positive bias. 

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Nifty has respected the short term moving average i.e. 20 DEMA in the recent dip however a mixed performance of the index heavyweights is keeping a check on momentum. Going ahead, indications are in favor of a steady up move toward the 22,500-22,800 zone and select index majors may offer the required thrust. On the downside, the 21,550-21,900 zone would offer support in case of any profit taking. Participants should maintain a “buy on dips” approach with a focus on stock selection. 

(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are author’s own. Please consult your financial advisor before investing.)

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