Financials drag Bank Nifty 350 pts lower, Sensex falls; Nifty may bounce back if it holds 15,650

BSE Sensex and Nifty 50 ended nearly half a per cent down on Tuesday, after S&P Global cut its growth forecasts for some of Asia’s top economies including India.

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Freshly listed India Railways Finance Corporation, Macrotech Developers, Sona BLW Precision Forgings, and Indigo Paints have been listed as midcaps by AMFI. (Image: REUTERS)
BSE Sensex and Nifty 50 ended nearly half a per cent down on Tuesday, after S&P Global cut its growth forecasts for some of Asia’s top economies including India. BSE Sensex ended down at 52,549.6 while the broader Nifty 50 index closed at 15,748. Index heavyweights such as ICICI Bank, Kotak Mahindra Bank, Infosys, Axis Bank contributed the most to the indices loss. BSE Midcap index underperformed equity benchmarks, falling 96 points or 0.42 per cent to settle at 22,542.80. BSE Smallcap index also ended weak at 25,061.62 levels. India VIX, the volatility index, cooled off 3 per cent to finish at 13 levels.

Rohit Singre, Senior Technical Analyst, LKP Securities

One more negative session as the index closed a day at 15750 with a loss of 65 points and formed a bearish candle for the second consecutive day. On hourly chart small double top pattern formed which has a neckline around 15670 zone this level will be strong support for nifty any break below that levels can emerge more sell-off so long can trail their immediate stop out below-mentioned levels, resistance is coming near 15800-15900 zone fresh move only above 15900 zone.

Arijit Malakar, Head of Research, Ashika Stock Broking

Domestic markets remained weak in line with Asian markets as investors were concerned with the more infectious delta variant of the coronavirus and the re-imposition of restrictions in parts of Asia, Europe, South Africa and South America. Besides, geopolitical risks also weighed as India deployed additional 50,000 troops along the China border. Centre announced eight new schemes to give a boost to the sectors reeling under the Covid-19 induced restrictions, however barring pharma and FMCG, all other sectors remained in red. At close, Nifty ends 66 points lower at 15748.50, Sensex falls over 150 pts at 52549.66.

Vinod Nair, Head of Research, Geojit Financial Services

Despite the government’s stimulus package to revive stressed sectors, domestic equities continued to trade weak due to new coronavirus outbreaks in Asia. Extension of emergency credit guarantee scheme to MSMEs and subsidised financing to small borrowers will be a boost to the Microfinance and NBFC sectors. Amid a broad-based selling in the market, the healthcare sector managed to remain positive due to the extended government support.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed a correction after a failed attempt to hold the support level around the Nifty 50 Index level of 15800. The market suggests, 15650 will be an important support level from a short-term perspective. Sustaining above 15620-15650 levels, the market expects to bounce back, and trade in the range of 15650-15900. The technical indicator suggests, a volatile movement in the market in the range of 15650-15900.

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