BSE Sensex and NSE Nifty 50 ended in deep sea of red on weekly F&O expiry session, a day after Wall Street witnessed its worst one-say sell-off since June 2020. BSE Sensex tanked 1,416 points or 2.6 per cent to settle at 52,792.23, giving up 53000 levels. While NSE Nifty 50 index plunged 430 points or 2.65 per cent finish trade at 15,809.40. Index heavyweights such as Infosys, Reliance Industries Ltd (RIL), Tata Consultancy Services (TCS), HDFC Bank and ICICI Bank contributed the most to indices loss. Broader markets too traded in line with equity frontliners. S&P BSE Midcap index plummeted 2,7 per cent or 602.4 points to 22,070. While S&P BSE SmallCap index lost 2.3 per cent or 604 points to settle at 25,800. India VIX, the volatility gauge, jumped nearly 10 per cent to settle at 24.45 levels. On sectoral front, Nifty Bank settled 2.4 per cent down.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The rout in other Asian indices and European gauges triggered a massive sell-off in local equities as both Sensex & Nifty ended below their crucial psychological levels of 53k & 16k, respectively. Investors fretted over stagflation risks and Federal Reserve’s more hawkish stance to rein in inflation by opting for more rate hikes, which would have a bigger impact on the economy going ahead. Till the time FIIs remain net sellers, the south-bound journey will be difficult to reverse. In addition, post gap down opening, the Nifty has formed a bearish candle which indicates further weakness from the current levels. Currently, the index is trading near 15700-15750 support level, hence a quick pullback rally is not ruled out if the index succeeds to trade above 15700. For traders, as long as the index is trading below 15900, the correction wave is likely to continue and below the same it could retest the level of 15700. On the further down side, the index could slip to 15600. On the flip side, above 15900, the Nifty could move up to 16000-16100 levels.
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Palak Kothari, Research Associate, Choice Broking
On a daily chart, Nifty 50 has formed a Bearish candle which indicates downside momentum for an upcoming session. Moreover, Nifty is facing support from horizontal line i.e., 15750 levels which is make or break level. In addition, Nifty has been sustained above the 21-Monthly Moving Average which indicates a bounce back from lower levels can be seen. However, the momentum indicators MACD & Stochastic were trading with a negative crossover & trading in oversold zone which is a sign of sideways to negative trend in Nifty. The Nifty may find strong support around 15700 levels, breaching below it can show more downside till 15500 levels while on the upside 16000 may act as an immediate hurdle. On the other hand, Bank nifty has support at 32800 levels while resistance at 34500 levels.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty fell towards the previous swing low on the back of a gap down start. The trend has turned negative as the Nifty fell below 16000. The immediate support is seen at 15671; below 15671 further correction towards 15400 looks possible. On the higher end, resistance is placed at 16000.
Vinod Nair, Head of Research, Geojit Financial Services
The recent earnings reported by the US retailers reflected the heat of high retail inflation, resulting in the rout in Wall Street. Persistent offloading by foreign investors along with mounting fears of an economic slowdown wreaked havoc in the domestic market. In this highly volatile market, investors can focus on sectors like FMCG, Pharma, Capital goods and manufacturing whose valuations are moderate and reasonable on a long term basis.
Mohit Nigam, Head – PMS, Hem Securities
On the technical front, the key resistance levels for Nifty50 are 16000 and on the downside 15600 can act as strong support. Key resistance and support levels for Bank Nifty are 33700 and 33000 respectively.