The benchmark domestic indices NSE Nifty and BSE Sensex concluded the day’s session mixed, as the Adani stock rout continued to drag Nifty 50. Sensex gained 224 or 0.38% to settle at 59,932, while Nifty closed flat, lower by 5 points after a volatile trading session. In the broader markets, small-caps continued to shine, gaining 0.59%. Sectorally, Nifty FMCG gained 2.28%, while Nifty Oil & Gas shed 1.97%.
Markets Decoded: Adani stocks continue to impact markets
“Despite a growth oriented budget, drop in crude prices and upside in the global market, the domestic market is not able to gain because of the Adani saga having a ripple impact on the investors. In addition, the premium valuation of India continues to weigh down the performance compared to other emerging markets which are expecting upside in the economy. The global markets are positive in assumption of being in the last phase of the rate hikes.” – Vinod Nair, Head of Research, Geojit Financial Services
“The continuation of sell off in Adani group stocks despite withdrawal of FPO hampered the positive vibes from the budget and Fed outcome. US Fed’s inline decision and bounce back in NASDAQ stocks brought some cheer to IT stocks. Global cues are gradually turning positive; however, domestic factors and increase in volatility in the last couple of days are likely to keep the market sideways in the near term. Stock specific action will continue as the result season progresses.” – Siddhartha Khemka, Head – Retail Research, MOFSL
Nifty Technical View: Resistance seen between 17,700-17,800
“The benchmark Nifty has been hovering within a falling channel, where it has found support at the lower band of the said channel. The trend looks negative, with the RSI trending upside down. A resistance level on the higher end is visible at 17,750, above which the Nifty may move up towards 17,950. On the lower end, support is pegged at 17,450, below which the correction may resume.” – Rupak De, Senior Technical Analyst, LKP Securities
“On the technical front, no sign of respite was seen in the index as it struggled in a tight range. The 200-day SMA is much in the vicinity now and with the ongoing lackluster participation of the bulls, there could be a higher probability of it being tested. As far as levels are concerned, the pivotal support of 17,500 remains the key support and any breakthrough could open room for the 200 SMA, which is placed around the 17,290-odd level. While on the higher end, until we decisively surpass the 17,700-17,800 zone, such timidity is likely to continue.” – Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One