Nifty formed a bearish candle on the daily chart as the closing was lower than opening level.
Nifty has been forming higher highs higher lows from the last five trading sessions but formed a bearish candle on the daily chart.
Nifty opened higher at 14979 and hit an intraday high of 15044 but after an initial hour, erased gains to hit a day's low of 14814. Nifty recouped losses and remained volatile for the rest of the session. It rose 30 points to close at 14894.
Nifty failed to hold on 15000 but managed to close higher for the fourth successive day amid volatility, the monthly expiry day for derivative contracts. Market was supported by the Federal Reserve's decision to keep rates at zero with continuing bond-buying programme but the rising COVID-19 cases capped upside.
Domestic market was torn between negatives and positives on a volatile trade owing to the monthly F&O expiry. Fed in its meeting sealed economic confidence by keeping its monetary policy loose and reaffirming aggressive support through bond buying. Metal stocks continue to outshine other sectors on strong outlook.
Bulls disappointed as they failed to capitalise on the strong opening. Moreover, by the end of the day, advance decline ratio skewed in favour of bears, hinting broad-based profit-booking around psychologically critical resistance of 15051 level.
In the next trading session, if the index fails to sustain above 14815, then it can see some selling pressure with initial targets placed near 14700 level.
However, the sentiment shall remain positive as long as the Nifty sustains above 21st April 21 bullish gap area present in the zone of 1494/14667, whereas a close below 14667 may once again tilt the tide in the favour of bears.
But if the index closes above 15000, then that will confirm strength for the bulls and an initial target towards 15350 can be expected.
Traders should remain neutral on the long side in the next session, whereas intraday traders should look for shorting below 14810 level for a modest target towards 14700.
On the sectoral front, metal index rose 4.5 percent, while auto and PSU bank indices fell 1 percent each. Midcap and Smallcap indices ended on flat note.