Bears returned to Dalal Street on Monday ahead of domestic inflation data. S&P BSE Sensex fell 503 points or 0.86% to settle at 58,283 while the NSE Nifty 50 index dropped 143 points or 0.82% to close at 17,368. Bajaj Finance was the worst-performing Sensex stock, down 3.1%, followed by Bajaj Finserv, and Reliance Industries. Axis Bank, on the other hand, was the best performing Sensex stock, up 2.48%. Axis Bank was accompanied by Tech Mahindra, Maruti Suzuki India, and Power Grid. Broader markets and Bank Nifty mirrored the fall. India VIX, on the other hand, closed 3.18% higher at 16.57 levels.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities –
“The positive chart pattern like higher tops and bottoms is intact on the daily chart and any weakness from here could be a buy on dips opportunity. The long term trend as per weekly chart remains negative. Immediate support is placed at 17200 levels and any upside bounce from here could find resistance at 17600 levels.”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –
“The markets failed to close above the 17500 level, we witnessed a sharp reversal and the Nifty dropped! The resistance of 17500 is crucial for the markets and we have to close above it in order to scale higher. On the flip side if 17300 breaks we might see a deeper correction which could take the index lower to 17000.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Ahead of the release of domestic inflation data and key global central bank meetings, the benchmark indices dived into the negative zone digesting weak macroeconomic numbers and continued FII selling. India’s Index of Industrial Production grew by 3.2% in October which was lower than market expectations. US CPI inflation was reported above the expected lines at 6.8% YoY in November owing to rising prices for food, energy and shelter. In view of the rising global inflation, the policy outcome of key central bank meetings, especially the US Fed and European Central Bank, will be keenly monitored by the markets to determine its trends.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services –
“Markets are consolidating on expected lines. Investors will keep an eye on various central bank meetings and take cues for fresh market direction. After the fall and recovery in the last two weeks, the market is unable to hold back at higher levels, indicating that index may remain sideways in a consolidative mode for some more time.”
Jay Thakkar – Vice President and Head of Equity Research at Marwadi Shares and Finance –
“Nifty closed well in the negative territory in today’s trading session, however, it has managed to hold its immediate support of 17300 and below that the gap support of 17250. So, the short-term support range is 17250-17300 whereas the resistance is pegged at the 17450-17500 range. The hourly momentum has turned negative, however, the daily momentum is still positive indicating that there can be some bounce back. So, if there is any further decline towards the lower end of the support it should be utilized as a buying opportunity. The support on the positional basis is pegged in the range of 17150-17250.”