Nifty formed a bullish candle on the daily chart as the closing was higher than the opening level.
Nifty opened sharply lower at 14481 and hit the day's low of 14416. Nifty recouped losses in the last hour to hit the day's high of 14673 before signing off 3.1 points higher at 14634.
Nifty recouped the day's losses in the last hour of trade to close flat with a positive bias, supported by FMCG, metals, and select IT, pharma and auto stocks but banks were under pressure.
A fantastic recovery led by metals with a host of stocks in the broader markets from sugar to rice to tea and coffee kept the screen lively in a highly volatile trading session. Investors were seen accumulating several largecaps as well as high-quality midcaps across sectors.
Domestic market bounced back from its early losses to trade flat owing to global cues and strong buying seen in FMCG and metal stocks. Financial stocks were the top laggards due to weak results of mid-sized banks & NBFCs while buying interest was seen in small-cap stocks.
India’s Manufacturing PMI data in April was flat at 55.5 with a mild change from March’s data of 55.4% mainly due to pick up in international demand for Indian goods.
As long as Nifty sustains above 14484, one can look for sideways consolidation with a positive bias, Moreover, at an intraday low of 14416 level, Nifty retraced 62 percent of last leg of the rally from the lows of 14151 to 15044 . Hence, today's sharp bounce, can also be an indication of temporary bottom at 14416.
In this scenario a sideways trading range can be witnessed in the next couple of trading sessions with pull back targets remaining in the zone of 14800/14984 level.
Contrary to this, weakness can be expected to resume on close below 14484.
Traders should remain neutral on the index by shifting focus to stock specific opportunities.
Sector Wise :- Metal index rose over 2 percent and FMCG index jumped 1 percent, while selling was seen in the banking and energy names.