Indian benchmark indices snapped 3-day winning streak on Tuesday to end lower in a highly volatile session ahead of the Q4 GDP data release. While BSE Sensex ended 359 points or 0.64% lower at 55,566, NSE Nifty 50 settled 0.46% down at 16,584. RIL and HDFC were the top draggers in the Sensex pack. Sectorally, indices ended mixed with the Nifty Realty index climbing 2.2%, and the Nifty PSU Bank index falling 1.1%. In the broader markets, BSE MidCap and SmallCap indices the trend to end 0.5% and 0.7% higher respectively. Volatility is likely to continue in coming sessions. On the technical front, the key resistance levels for Nifty 50 is 16800 and on the downside, 16400 can act as strong support, said analysts.
Vinod Nair, Head of Research at Geojit Financial Services
“Domestic market failed to hold on to recovery mode as it was awaiting the release of Q4 GDP data. GDP is expected to register a slower growth rate of 4.0-4.2% as the consumer spending and investments were hit by soaring inflation. A hike in oil prices due to the EU’s ban on Russian oil imports would act as a headwind in taming global inflation. Changes in policy by central banks would be a major factor to be monitored in the coming days.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty remained volatile during the day before closing around the middle of the range. On the higher end, it found resistance at the 50EMA on the daily timeframe. Going forward, the trend may remain choppy as long as the index remains below 16700. On the lower end, support is visible at 16400.”
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Post market comment by Mohit Nigam, Head – PMS, Hem Securities
“Indian equity markets closed with negative bias in late afternoon session. Financial and IT shares dragged the indices lower, though gains in metal shares lent some support. On the global front, Asian markets were trading mostly in green following the lack of cues from Wall Street overnight due to a holiday, as signs of easing COVID-19 curbs in Beijing and Shanghai as well as the announcement of more stimulus measures in China raised optimism about growth in the world’s second largest economy and helped underpin sentiment. European markets were trading mostly in red as attention shifts to inflation and interest-rate hikes. On the technical front, the key resistance levels for Nifty50 are 16800 and on the downside 16400 can act as strong support. Key resistance and support levels for Bank Nifty are 36000 and 35000 respectively.”
Palak Kothari, Research Associate, Choice Broking
“The Nifty has formed a Bearish Harami kind of candlestick pattern on daily time frame which indicates weakness for upcoming sessions. Nifty has faced resistance from 38.2% FRL and showed selling pressure from higher levels. northward journey in the counter. Nifty has given closing above 21-Hourly Moving Average which indicates sustain above the same can show upside moment in the counter. However, the momentum indicators MACD & Stochastic were trading with a negative crossover on an hourly chart which suggested a southward journey in the counter. The Nifty may find Strong support around 16400 levels, while on the upside 16750 may act as an immediate hurdle. On the other hand, Bank nifty has support at 34800 levels while resistance at 36000 levels.”