BSE Sensex and Nifty 50 ended at nine-day lows on Friday as bears took more than the Dalal Street. Headline indices completed in the red for the fourth consecutive day. BSE Sensex plunged 435 points or .85 per cent to 50,890. While Nifty 50 ended down at 14,982 level. In the intraday trade, the 30-share index tanked 800 points from the day’s higher to hit a low of 50,624. While NSE’s Nifty touched a day’s low of 14,898.20 level. Both the headline indices ended this week 1.2 per cent reduced. The broader markets, also, ended in the red. The S&P BSE MidCap index underperformed BSE Sensex and completed 1.7 per cent or 340 points down at 20,035. The SamllCap index settled at .7 per cent or 153 points down at 19,863.
Where are Indian share markets headed?
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
After a stellar rally from 13600 to15430/46200-52516 at the moment the industry witnessed promoting stress. From the final 4 days, the index corrected more than 450/ 1000 points. Technically, on weekly charts the index has formed a bar reversal candle which clearly suggests brief term weakness will continue in the close to future. However, the medium term texture of the industry is nonetheless bullish and most likely to continue if the nifty succeeds to trade above 14900-1500/51500-51850 which is earlier resistance level (Prior to the Budget of announcement). In addition, regardless of brief term weakness the industry is nonetheless trading nicely above brief term and medium term averages which also help medium term uptrend.
We are of the view that we are expecting the industry to discover help in between 15000 -14900/51500-51850 but in case there is in addition weakness in worldwide markets, then we may well even see the level of 14750/50250 which was earlier the resistance level. As the industry currently shaded more than 450/1000 points initial tactic need to be to look for adding lengthy positions and on bounce back we can cut down close to 15250-15300/51500-51900.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
From the higher of 15431, the NIFTY has come off practically 500-odd points. From the FO information, till expiry on 25FEB, we really feel that some technical pullback is most likely as the NIFTY has got deeply oversold in the instant brief term. It is unlikely that the NIFTY dips a lot under 15000 as the Index enjoys a great brief term help at 14950-14900 levels. From the present levels, we count on some technical pullback to come about till 15200-odd levels. Fresh directional cues will seem only following that.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
The Nifty-50 & BSE Sensex declined by 1.2% this week as industry mood became cautious on increasing worldwide and nearby bond yields. The broader markets that is NSE Mid Cap one hundred Index and BSE Small Cap Index are each in the green this week. The US 10 Year Bond yields have risen from under 1% to 1.29% constructing in financial effect of the US$ 1.9 trillion stimulus package. In India also the 10 year bond yields have moved up from current low of 5.76% to 6.13% which could primarily be linked to the larger fiscal deficit estimates. We count on domestic 10-year bond yields to be in the variety of 6-6.75% in this calendar year. Oil & Gas & energy stocks had been big gainers this week. Almost 37 stocks from Nifty-50 lost ground this week with Pharma and pick buyers obtaining lost the most. This week PSU banks had been in demand on reports of government most likely to bring amendments to two legislations later this year to facilitate privatisation of public sector banks. We need to have to see if Nifty-50 holds the 15,000 level in the close to term. The next big help for the Nifty-50 is the 50 DMA placed at 14,321 as of now.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Profit booking extended for a fourth session today, as Indian markets briefly dipped to their lowest level in 2 weeks. The promoting today was across the board, with broader markets also retreating sharply ahead of a minor recovery in the final hour of the session. For the week, Nifty formed a Bearish Engulfing candlestick pattern. The early week reversal from just underneath the 161.8% fibonacci retracement level of 15470 indicates that this is an significant resistance to hold an eye on in the brief-term. Meanwhile, the instant help to concentrate on is today’s low of 14900. If Nifty sustains under 14900 in the coming week, the correction is most likely to extend towards 14730-14600. However, if the index manages to hold above 14900 and goes on to surpass 15470, a fresh up leg can be anticipated to unfold that could take the index towards 15910.