The Sensex and Nifty 50 indexes ended little changed on Friday as investors awaited release of official Gross Domestic Product (GDP) data. The Nifty closed below 13,000-mark after hitting an intraday high of 13,035.30 and low of 12,914.30 during the session as gains in HDFC, HDFC Bank, Asian Paints and Bajaj Finance were offset by losses in Reliance Industries, Infosys, TCS, Axis Bank and HCL Technologies. The gauge of banking shares on National Stock Exchange – Nifty Bank index – rose 0.2 per cent.
The Nifty is currently in an immediate resistance zone of 13,040-13,146, Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said in a note.
“13,040 – 13,146 remains an immediate resistance zone; whereas on the lower side, 12,900 – 12,868 – 12,790 can be seen as cluster of supports,” Mr Chavan added.
Mr Chavan has advised traders to trade with a positive bias as long as the Nifty stays above 12,790 – 12,730. However, he advises avoiding aggressive bets on the index and focus on individual stocks.
“With this week’s minor decline, 12,790 – 12,730 has become a sacrosanct support and till the time it is not breached convincingly, one should trade with a positive bias. Although the overall trend has been strongly up, we still believe that one should avoid aggressive bets and rather focus on individual stocks with proper risk management,” he added.
The trading range for coming sessions will be between 13,150 on the upside and 12,730 on the downside and till the time we do not break outside this range, we are likely to see trades on both sides, especially in indices, Mr Chavan said.
Above 13,150, the next levels to watch out for would be 13,250-13,400. But the move will not be as swift as it has been in the recent past. The real action continues in the broader markets as we can see stellar moves on a lot of mid-and small counters, he added.