On the day of the weekly F&O expiry, BSE Sensex and Nifty 50 ended in the negative territory
On the day of the weekly F&O expiry, BSE Sensex and Nifty 50 ended in the negative territory. BSE Sensex tumbled 433 points or 0.72 per cent to 59,920, while the Nifty 50 index fell 143 points or 0.80 per cent to 17,873. Index heavyweights such as HDFC, ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, Bajaj Finance, among others contributed the most to the indices loss. In the broader market, BSE Midcap index fell 0.64 per cent or 169 points to settle at 26,129. While BSE Smallcap index ended 0.5 per cent or 158 points down at 29,159. India VIX, the volatility index, gained 0.3 per cent to settle at 16.31 levels. Technical analysts say that the intraday texture of the market is weak but the strong possibility of a pullback rally can not be ruled out
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
- Mcap of nine of top-10 most valued firms erode by over Rs 2.62 lakh crore, Bharti Airtel only gainer
- F&O expiry: Nifty to trade in 18200-17700, OI signals support at 38000 for Bank Nifty; check trading strategy
- SGX Nifty down, Nifty technical view, stocks under F&O ban; key things to watch out on Wednesday
Markets underwent profit-taking for the third straight session as benchmark Nifty comfortably broke the intraday support of 17900, which is broadly negative. Technically, the index has formed a bearish candle and it is currently trading near 50 day sma following the sharp intra-day correction. The intraday texture of the market is weak but strong possibility of a pullback rally is not ruled out if it succeeds to trade above 50 day SMA or 17750. For day traders, 17750-17800 would be key support levels, and as long as the index is trading above the same, bullish sentiment will be intact. On the flip side, below 17750, it could trigger short term weakness and we may see a quick intraday correction up to 17700.
Rohit Singre, Senior Technical Analyst, LKP Securities
Index showed selling pressure for the third consecutive session and closed a day at 17874 with a loss of nearly one percent. Index has shown some pullback after hitting a good demand zone of 17800 in last hour which hints 17800 will be first good support for coming session followed by 17700 zone also any dip near said levels will be buying opportunity on the positional basis with keeping stop out level below 17600 zone, the immediate hurdle is coming near 17940-18050 zone above said levels one can expect a fresh breakout.
Vinod Nair, Head of Research, Geojit Financial Services
Global inflationary pressure following upsetting US inflation data forced the domestic market to trade with deep cuts. Beating the market estimates, US inflation hit a 30-year high level of 6.2% YoY adding fears of an earlier than expected rate hike, while US bond yields shot higher. Rising inflationary pressure along with prospects of an early rate hike can keep the domestic market on edge as such indicators tempt foreign investors to pump out liquidity from emerging markets like India.
S Ranganathan, Head of Research, LKP Securities
Weak Global Cues led by rising CPI in the US spooked markets as fears of the FED being behind the curve seem to worry the street. Back home most of the sectoral indices traded weak today but it is interesting to note that even on a weak day the street did reward companies with a positive earnings surprise, a key feature witnessed during the second-quarter earnings season. Defence stocks saw good investor interest today given the size of the opportunity in the ‘Atmanirbhar Bharat’ Theme.
Vijay Dhanotiya, Lead of Technical Research, CapitalVia Global Research
The market witnessed some corrections after it failed to sustain the level of 18000 in the market. Market suggests that 17600-17800 will act as a support zone in the market. If the market is able to sustain these levels, it can witness a bounce back and Shift in momentum. Technical indicators suggest a volatile movement in the market.