Markets end flat in lacklustre trading on sluggish global cues

The benchmark key indices started on a firm note but could not capitalise on the sold start as investors traded with caution and followed other Asian peers.

At close, the Sensex was up 29.41 points or 0.05 percent at 60,077.88 led by gains in Reliance Industries, HDFC Bank and Maruti amid a largely positive trend in global markets. After touching its lifetime intra-day high of 60,412.32, the 30share Sensex ended 29.41 points or 0.05 per cent higher at its all-time closing peak of 60,077.88.

The broader Nifty was up 1.90 points or 0.01 percent at 17,855.10. About 1592 shares have advanced, 1682 shares declined, and 176 shares are unchanged.

"After making a high of 17,943 , Nifty closed flat at 17,858 giving up the entire intraday gains. Such movements around the all time high is not a good sign for traders in long positions. If Nifty is not able to close above 17,950 levels in the next few trading sessions , it may correct to its support range of 17,68017,720. Traders in long positions need to keep strict stop loss and may consider booking profits. New long positions can be initiated once Nifty closes above 17950 with high volumes for 18040 and 18080 as targets," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Auto stocks were the star performers in a sluggish session and the texture of the chart suggests Maruti, Tata Motors and Bharat forge have formed a strong technical breakout formation and are likely to outperform in the near future, said Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "After showing small range movement on Friday at the swing high of 17,947, the Nifty continued its consolidation movement on Monday and closed the day on a flat note amidst a range movement. After opening on an upside gap of 79 points, Nifty made an attempt to move up soon after the opening. Intraday profit booking triggered from a day's high of 17,943 levels and the minor upside recovery was seen in the mid to later part from a day's low. The overall trend for the day was choppy."

The short-term trend of Nifty continues to be range-bound.

This consolidation movement could continue for the next 1-2 sessions before showing upside breakout of the range movement.

A decisive move above 17,950 is likely to open the next upside of 18,200 levels in the near-term. Important lower support is placed at 17,650, Shetti said.

Chouhan of Kotak Securities Ltd, said, "On intraday charts, the Nifty has formed a double top formation which indicates temporary weakness. However, the shortterm trend is still positive. For day traders, the 17,900 level could be the immediate hurdle, and below the same the correction wave could continue up to 17,750-17,710 levels.”