Bulls take a breather after record highs, here’s how experts believe markets will trade tomorrow

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Bulls take a breather after claiming fresh record highs and ended flat with a negative bias today.

The Sensex hit a fresh high of 52,516 while the Nifty50 clocked in a record level of 15,431 intraday, however, gave up these early gains in the second half of the trading session .

While at close, the Sensex ended with minor losses of 49 points to 52,104, the Nifty50 shut shop at 15,313 after struggling to stay afloat amid heightened volatility.

Selling pressure in private banks and IT stocks pulled down the benchmarks in today’s trade while in the broader market space the mid and small caps continued their outperformance.

Here’s how experts believe markets will trade tomorrow:-

Manish Shah founder www.Niftytriggers.com

Nifty saw a decline from the highs of the day. At one point Nifty was down by around 60 odd points from the close of the previous day. Nifty bounced back from the lows of the previous day. The price action is not particularly bearish though we have seen a red candle. Small real body with long shadows suggests indecision. Similar pattern was also seen yesterday and this throws a possibility of a range bound action over next couple of session.

With a lows of last two days established at 15,250 this is a great support level and if Nifty breaks below this we could see a couple of days of decline towards 15,000-15,100. On the higher side resistance is now established at 15,430 and once nifty moves above this 15,500-15,550 is a possibility. Any long trades should be protected with a stop below 15,250-15,225.

Momentum continues to remain strong on the day time frame and from the lower time frame charts it seems that today’s decline is just a one day correction within an ongoing rally.

Overall today’s slightly bearish behaviour does not seem to be a major cause for concern as long as 15250-15225 holds good.

Shrikant Chouhan, Executive Vice President, Kotak Securities

For the twelfth consecutive session, the market is managing to set a record high. It is an overextended market and traders need to be careful when adding long positions at high levels.

We must be optimistic but cautiously. According to the Japanese candlestick theory, there is continuity in the market today. The market has fallen to the lowest level of the previous day but due to the unusual strength in the market, it has turned into a buying opportunity for short-term traders.

On Wednesday, the Nifty and the Sensex could show gains up to the 15,400/52,400 level and further bullishness above the 15450/52500 levels. On the downside, the 15,240/51,850 level would provide major support and dismissing it would lead to short-term weakness in the market