Closing Bell: Sensex slips 135 pts, Nifty flat after strong opening - Anil Singhvi explains market reversal

Indian equity benchmarks ended flat to negative on Thursday after witnessing profit booking following a strong gap-up opening, despite supportive global cues.

The BSE Sensex fell 135 points to close at 75,183, while the Nifty ended nearly unchanged at 23,654 amid a volatile trading session.

Nifty Erases Early Gains

The Nifty 50 opened 171 points higher at 23,830.05 against the previous close of 23,659 and extended gains to hit an intraday high of 23,859.90, up nearly 201 points from the previous close.

However, the index later reversed sharply and slipped to an intraday low of 23,596.60, marking a fall of around 263 points from the day’s high. Nifty finally settled almost flat at 23,654.70, down 4.30 points or 0.02 per cent.

Sensex Falls Nearly 950 Points From Day’s High

Similarly, the BSE Sensex opened 414 points higher at 75,732.42 compared with its previous close of 75,318.39 and surged to an intraday high of 75,945.79, gaining nearly 627 points.

The index later witnessed heavy profit booking and dropped to a low of 74,996.78, falling around 949 points from the day’s high. Sensex eventually ended 135.03 points lower at 75,183.36.

No Major Negative Trigger Behind Fall: Anil Singhvi

Market expert Anil Singhvi said there was no major negative trigger behind the decline and attributed the weakness mainly to profit booking and weekly expiry-related volatility.

He said markets had been recovering over the last two sessions despite weak openings, and similarly, Thursday’s decline also did not have any strong fundamental reason behind it.

Global Cues Remained Supportive

Singhvi noted that crude oil prices were largely stable near the USD 105-106 per barrel range and the rupee had also shown a good recovery of nearly 40 paise.

He added that Asian markets were trading strongly and Dow Futures, despite being weak initially, later showed a smart recovery. “Most of the global factors are still positive for the market,” Singhvi said.

Why Did Markets Reverse After Gap-Up Opening?

He explained that markets often reverse their trend after a gap-up or gap-down opening. According to him, after opening sharply higher, some profit booking was expected, especially on the weekly expiry day.

Singhvi said Nifty had been trading in a narrow range of around 100 points over the last five sessions, between 23,600 and 23,700 levels. He added that a directional move was eventually expected after such consolidation.

Resistance Levels Worked Perfectly

Singhvi said the market had opened near the expected resistance zone of 23,850 on Nifty and around 54,100-54,400 on Bank Nifty, which were identified as selling zones earlier in the day.

“Markets reversed exactly from those levels,” Singhvi said, adding that the trading strategy worked accurately. According to him, traders were advised to maintain a “sell on rise” approach near the 23,800-23,850 range on Nifty.

Key Trading Strategy And Targets

Singhvi said traders should keep a stop loss near 24,100 and watch downside targets of 23,815, 23,775 and 23,700 levels. He added that lower targets of 23,650 and 23,615 could also be seen if weakness increases.

Singhvi said investors should remain cautious when markets open sharply higher and wait for a clear direction instead of chasing prices immediately.

Important Support And Resistance Levels

Talking about key levels ahead, Singhvi said 23,600 on Nifty and 53,100 on Bank Nifty were important short-term and intraday support levels. “This is the decisive zone. Weakness will increase only below these levels,” he said.

He added that as long as Nifty stays above 23,600 and Bank Nifty remains above 53,100-53,200 levels, markets are not looking weak.

However, Singhvi said if Nifty starts trading below 23,600, then strong buying support could emerge in the 23,350-23,465 range. For Bank Nifty, he identified the 52,600-52,800 zone as an important support area where buying opportunities may emerge.

On the upside, Singhvi said the 23,850-24,000 range would continue to act as a strong resistance zone for Nifty. For Bank Nifty, he said 54,100-54,400 would remain an immediate hurdle.

He further said that if Nifty manages to close above 23,700 and Bank Nifty above 53,800, market sentiment may improve further.

Iran-US Report Boosts Global Sentiment

During the discussion, Singhvi also referred to a Reuters report suggesting that Iran had sent its response to the United States amid efforts to reduce tensions between the two countries.

He said the report may have helped improve sentiment in global markets, leading to a recovery in Dow Futures and some easing in crude oil prices.

Singhvi noted that crude oil prices slightly cooled below USD 106 per barrel after the report, while Dow Futures recovered nearly 200 points from lower levels.

He added that Nifty also recovered nearly 50 points from its intraday low near the 23,600 mark following the improvement in global sentiment.

Despite volatility, Singhvi maintained that selective buying opportunities remain in the market, particularly in Nifty, as long as key support levels hold.