Nifty near days low; banking stocks seen in buoyant mood!

Market update at 12:45 PM: Indian markets were seen cracking impulsively in the last hour or so. Nifty is trading near its lowest point of the day, down by 0.33 per cent at the 17,304 mark. Among the sectoral indices, Nifty IT and Nifty Auto were seen to be the top losers while on the other hand, Nifty PSU Bank and Nifty Bank emerged as the top gainers.   

The broader market indices were seen in an upbeat mode with Nifty Midcap 100 and Smallcap 100 advancing 0.15 per cent & 0.56 per cent, respectively. Market breadth remains healthy as advances are seen greater than declines.   

Market Update at 10:40 AM: Indian markets opened in green on Wednesday; however, thereafter, it slipped lower and currently, Nifty is trading below the neutral line. Besides, the broader markets are seen outperforming with Nifty Midcap 100 and Smallcap 100 gaining 0.68 per cent each. Nifty Midcap 100 index has logged a fresh all-time high while Smallcap 100 index is within a striking distance of its all-time high level.   

The market breadth is strongly in favour of advances. Among the sectoral indices, Nifty PSU Bank and Nifty Metal emerged as the top gainers.   

Nifty snapped its three-day winning streak as it ended the day with modest losses. However, the daily range of Nifty was about 150 points as it had slipped below the prior bar low at one point in the day, only to recover later on. It failed to sustain at higher levels, which clearly indicates fatigue in the markets after an impulse move witnessed in the last couple of weeks.   

The broader markets too ended the day in end with Nifty Midcap 100 and Smallcap 100 plunging 0.25 per cent & 0.09 per cent, respectively.   

On the daily chart, Nifty has formed a small-bodied bearish candle with a shadow on either side of the candle. Furthermore, it has negated the formation of higher highs & higher lows of the last seven trading sessions.   

Nifty, despite slipping below the important support of 17,340, has managed to hold on to this support on a closing basis. Hence, as long as it stays above 17,340, keep a positive bias while on the upside, the level of 17,440-17,500 is likely to act as a resistance level.