Nifty opened gap up and inched higher towards the 12000 mark in the initial hour of the trading session. However, the index could not sustain above 12000 mark and witnessed selling from the high point of the day. On the way up, 12000 – 12041 shall act as crucial resistance level on the way up. The scope for a correction in the forthcoming trading is possible as long as it does not close above this resistance zone. On the way down, 11785 – 11682 shall act as crucial support levels in the near term. Bears will gain momentum once the index breaks and sustain below 11682. Overall, we maintain our bearish outlook on the index for the short term with reversal placed at 12000.
On the hourly chart, Nifty is trading above the moving average (MA) and the EMA, i.e. 11798 and 11642, respectively. The hourly momentum indicator is bullish. Market breadth is positive with 1045 advances and 625 declines on the National Stock Exchange (NSE). According to analysts, markets ended lower despite the clear mandate for Narendra Modi as BJP's victory has already been factored in by market participants. From here on markets will watch out for global cues and what the government does on the policy front to tackle the cyclical slowdown in the economy.
On the NSE, Adani (NS:APSE) Ports, Grasim, IndusInd Bank (NS:INBK), and ICICI Bank (NS:ICBK) were the top gainers. On the flip side, ITC (NS:ITC), Eicher, Vedanta, HDFC Bank (NS:HDBK), and Bajaj Finserv (NS:BJFS) were the top losers. All the sectoral indices were trading in the green on the NSE except Nifty FMCG, IT, and Metal indices, which were down ~1%.
