Dalal Street Corner: Market snaps 3-day rally; Sensex, Nifty each down over 1% - what should investors do on Friday?

The domestic market snaps three-day gaining streak amid weak global cues, as Sensex slipped by over 770 points and Nifty50 settled below 58788-mark on Thursday. The market was dragged by almost all sectors, however, IT index tumbled most by over 2 per cent at the close. 

The boarder markets outperformed the benchmark indices as the Nifty mid-cap index declined almost 1 per cent at the market close. While Nifty Bank dipped 321 points to 39,010. The market breadth neutral, advance-decline ratio stood at 1:1.  

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Billionaire investor Rakesh Jhunjhunwala-backed Titan’s shares closed with a gain of 0.4 per cent after reporting better-than-expected third quarter results for FY22. In the mid-cap category, Godrej Properties slipped over 6 per cent after a weak Q3, Jubilant plummeted over 3 per cent at the close.  

We have collated views from different experts as to what investors should do when trading resumes:

Expert: Vinod Nair, Head of Research at Geojit Financial Services.   

The domestic market extended its losses following broad-based selling as global cues turned in favour of bears. All major sectors succumbed to selling while Auto stocks showed some resistance on the back of sequential growth in auto sales numbers during January. 

US futures were under pressure following weak earnings numbers reported by Meta (Facebook) while European markets fretted about monetary policy tightening ahead of the central bank policy announcement" 

Expert: S Ranganathan, Head of Research at LKP securities.   

Markets opened steady and drifted lower throughout the day only to close at the lowest point of the day on the back of stronger than expected inflation of over 5 per cent in the Euro Zone led by energy prices.  

Indices lost 1.5 per cent led by IT & Real Estate with most of the sectoral indices barring the Auto Index ending in the red today. The broader markets witnessed investor interest in Sugar stocks with unblended fuel set to attract additional excise duties. 

Expert: Rupak De, Senior Technical Analyst at LKP Securities 

Nifty closed with a selling pressure on Thursday as it found resistance at 17775-17800. On the lower end the index found support at 17530 which is 50EMA on the hourly timeframe. Going forward, the 17530-17500 zone may act as near-term support; bounce is likely if Nifty holds above 17500. 

 On the higher end, resistance remains at 17700/17800. The trend is expected to remain positive as long as Nifty remains above 17400 on closing basis.