Dalal Street Corner: Markets close negative after massive intraday rally; what should investors do on Monday?
The Sensex slipped 884 points from highs to close with a cut of 77 points at 57,200, while the Nifty50 settled above 17100-level.
After trading majorly in the green zone, the last-hour fall leads to a near day’s low close for the Indian markets on Friday. The Sensex slipped 884 points from highs to close with a cut of 77 points at 57,200, while the Nifty50 settled above 17100-level.
In the broader markets, the midcap index relatively outperformed, market breadth favours advances. Similarly, the Nifty Bank dragged the Nifty50 most by almost 0.77 per cent to 37689-level.
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ICICI Bank, HDFC Bank and Maruti dragged the markets most while IT giants such as TCS and Infosys gained, along with ITC. Maruti Suzuki was top Nifty loser with a fall of over 3 per cent, besides, Power Grid, Tech Mahindra, Hero Moto, Axis Bank also dragged the market.
On the contrary, NTPC and UPL are top nifty gainers ahead of their earnings; Sun Pharma gained more than 2 per cent after an improved set of earnings by Taro. Besides, Bharti Airtel closed over 1 per cent higher but off highs after the Google deal announcement.
India VIX was down by 1.73 per cent from 21.06 to 20.69 levels. Volatility on Friday cooled down but is still hovering at higher zones from the last 3 sessions signaling volatile swings in the market.
“After the decent opening post-Thursday’s weak closing, domestic bourses again staged a quick sell-off, tracking weak European trend. Policy tightening by the US Fed and rising geopolitical tensions in Ukraine coloured global sentiments,” Vinod Nair, Head of Research at Geojit Financial Services said.
In the market this week, Sensex, Nifty50 and Nifty Bank each tumbled over 3 per cent for the second straight week. The midcap index fell over 2 per cent this week and almost 7 per cent in the last 2 weeks.
Of 50 scrips on Nifty, 35 stocks fell this week. In this, Tech Mahindra, Wipro, Titan are the top weekly losers; while Cipla, Axis Bank, IndusInd Bank, NTPC, Maruti Suzuki, SBI, and Airtel are the top gainers.
We have collated views from different experts as to what investors should do when trading resumes:
Expert: Rupak De, Senior Technical Analyst at LKP Securities.
Nifty remained volatile during the day as it found resistance around 17400 before falling towards 17050. Going forward the volatility is likely to continue; on the higher end, 17400 may remain as crucial resistance. On the lower end, 17050-17000 may act as support for the falling Nifty, below which the index may drift down towards recent swing low of 16836'.
Expert: Chandan Taparia Vice President | Analyst-Derivatives Motilal Oswal Financial Services Limited
Nifty index formed a Bearish candle on daily scale with long upper shadow even after negating its lower highs formation of the last six sessions. It formed a Bearish candle on daily and weekly scale and has been forming lower highs - lower lows from the last two weeks.
The index must hold above 17000 zones, to start the next leg of bounce towards 17350 and 17500 zones whereas support exists at 16850 zones.
Expert: Palak Kothari Research Associate Choice Broking
Technically, the index has confirmed the bearish engulfing candlestick pattern on the weekly chart but it has taken support from 78.6 per cent RL of its previous up rally which suggests sustained above the same can show bounce back movement in the counter.
On a four hourly chart, the index has taken resistance from 89-Four Hourly Moving Average as well as the index has formed a bearish candlestick pattern which points out the weakness in the counter.
At present, the Index has support at 16830 levels while resistance comes at 17450 levels, crossing either side can suggest further direction. On the other hand, Bank nifty has support at 37000 levels while resistance at 38500 levels.
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