The index has to cross and hold above 14,750 to witness an up move towards 14,900 and 15,000, while on the downside, support exists at 14,600 and 14,500 levels, say experts.
The Indian market snapped a two-day winning streak on March 31 and closed with losses of more than a percent. The S&P BSE Sensex closed 627 points down at 49,509 and the Nifty50 ended 154 points lower at 14,690.
Sectorally, buying was seen in realty, FMCG, consumer durable and metal stocks, while profit-taking was visible in banks, finance, power, telecom, and energy stocks.
Weak global cues dented the rally on Dalal Street seen in the last two sessions. A rise in US bond yields triggered risk-off sentiment along with a rise in COVID-19 cases.
"Weak cues from across the globe forced the domestic market to shed yesterday’s optimism. US markets had a weak close after the US bond yield reached near its 14-month high level, while European and Asian markets followed the trend,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
"Private banks were the sectorial laggards due to selling seen in heavyweights. However, midcap and smallcap stocks remained in positive territory today.”
Here is what experts suggest investors should do on April 1:
Sahaj Agrawal, Head of Research-Derivatives at Kotak Securities
A lot is happening on the global market front—a steep rise in the dollar index and US bond yields—and has increased volatility in domestic markets.
We believe the market remains in a medium-term uptrend. The current momentum bottom is seen at 13,450 and resistance at 15,600. We expect range-bound activity with high volatility.
We expect stock-specific action to continue. FMCG, IT and insurance sectors trade with positive bias providing value-buying opportunities.
Chandan Taparia, Vice President | Retail-Research at Motilal Oswal Financial Services Limited
The Nifty formed a Bearish belt hold candle and also formed an Inside Bar as it moved within the trading range of the last session.
Now, the index has to cross and hold above 14,750 for an up move towards 14,900 and 15,000. On the downside, support exists at 14,600 and 14,500.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
Despite a lacklustre movement, the Nifty held the support level around 14,600. Trading above 14,600 is positive from a short-term perspective.
If the index sustains above 14600, the market is expected to gain momentum to increase the odds of a fresh breakout above 14,900.
Momentum indicators like RSI and MACD support the upside move and indicate that a new breakout's potential is exceptionally high with an upside projection till the 15,300 levels.
Ajit Mishra, VP-Research, Religare Broking Ltd
We’re seeing erratic swings during this consolidation phase and the divergence between the Nifty and the banking index is further adding to the participants' worries.
Traders should limit leveraged positions and focus more on the selection of stocks. In the absence of a major event, global cues and COVID-related updates will remain in focus.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market retreated from the day's highs and continued to consolidate throughout the day. The bias was negative and most of the index heavyweights closed lower. The market width was 1:1 and therefore the market trend could not be determined.
The trading range for the market on April 1 could be 14,650/49,300 and 14,550/49,000. The market could see 14,400/48,700 below 14,550/49,000. Beyond 14,750/49,700, the market could pick up speed again.
Hold long poses until 14,550/49,000 breaks. The Bank Nifty did not rise as expected, however, we feel 33,000 would act as major support.
Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. Advises users to check with certified experts before taking any investment decisions.