Technical indicators signal non-directional activity

Mumbai: The benchmark indices witnessed range-bound activity. The Nifty ended 18 points higher, while the Sensex was down by 40 points. Among sectors, Healthcare, Auto, and Pharma indices rallied over 1 percent, whereas the IT index lost the most, shedding 1.90 percent.

Technically, the market opened on a positive note, but after a strong opening, it experienced narrow-range activity throughout the day.

A small candle on the daily charts and non-directional activity on intraday charts indicate indecisiveness between the bulls and the bears. “We are of the view that, on the lower side, 84,200 would be the crucial support zone, while 84,500 would act as an immediate resistance area for the bulls”, says Shrikant Chouhan of Kotak Securities.

As long as the market is trading within this range, non-directional activity is likely to continue. On the higher side, a successful breakout of 84500 could push the market towards 84,800-85,000. On the flip side, below 84,200, the selling pressure is likely to accelerate. Below this level, the market could retest the levels of 84,000-83,700.