Markets shrugged off intra-day volatility as last-hour buying helped key indices end in the green. Investors covered their positions on the last day of the December monthly expiry, fueling an upsurge in metals, banking, and oil & gas shares on hopes of a demand revival after China lifted Covid-related restrictions.
But the sideways movement will continue going ahead as recessionary fears in the West continue to loom large because of more likely rate hikes and tempered growth going ahead.
Technically, Nifty took support near 18000 and bounced back sharply. A bullish candle on daily charts and higher bottom formation on intraday charts is indicating a further uptrend from the current levels.
For bulls, 18000 would act as a sacrosanct support zone, and above the same, it could move up to 18280.
In case of further upside, the index could move up to 18400. On the flip side, below 18000 traders may prefer to exit out from the trading long positions and below the same, the index could slip till 17900
- Market Overview by Shrikant Chouhan, Equity Research (Retail) Head, Kotak Securities