BSE Sensex and NSE Nifty 50 ended more than 1 per cent down each on Monday, on tepid global cues after US Fed chair Jerome Powell’s ultra-hawkish statement at the Jackson Hole event. S&P BSE Sensex fell 861.25 points or 1.46 per cent to end at 57,972.62, and the NSE Nifty 50 closed 246 points or 1.40 per cent lower at 17,312.90. Index heavyweights such as Infosys, ICICI Bank, HDFC Bank, Tata Consultancy Services (TCS), and Reliance Industries Ltd (RIL), among others contributed the most to the indices’ fall. S&P BSE Midcap and small cap indices also ended lower. S&P BSE Midcap index fell 0.8 per cent or 202 points to 24,917, while S&P BSE SmallCap index settled 0.6 per cent or 161 points down at 28,255.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Investors had already got the wind of bearish undertone for the start of the week, after the US Fed chairman’s speech on Friday talked about further rate hikes going ahead to tame inflation. And as expected, Sensex crashed nearly 1,500 points in early trades before recovering some ground to close off its day’s low. Traders are expecting more bouts of volatility in coming sessions on concerns that continuation of rate hikes in the US could pose a threat to the global economy and hurt growth prospects. Technically, the Nifty closed below the 20-day SMA (Simple Moving Average) which is broadly negative. For Nifty, 17400 and 17450 would act as important resistance zones. And 17250 could be the sacrosanct support zone. Below the same, the index could slip till 17150-17100. On the flip side, above 17400, the index would move up to 17450-17500.
Kunal Shah, Senior Technical Analyst, LKP Securities
After a big gap down, the index traded in a range on an intraday basis and held the support of 38,000. The index is stuck in a broad range between 38,000-39,000 levels where the demand and supply are visible. The index, if it fails to hold the support of 38,000 on a closing basis, will see an extension of the current sell-off. The immediate hurdle on the upside is placed at 38,500 and if breached can witness some short covering move toward 38,800-39,000 levels.
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Markets witnessed a sea of red at Dalal Street as Fed choses inflation flight over growth. The Nifty plunged and ended deep in red as bears were seen in total control after Jerome Powell at his Jackson Hole appearance mentioned that interest rates may continue to rise to combat inflation. Powell also stated that failure to restore price stability would mean far greater pain. Technically speaking, the Nifty line on the sand is at the 17161 mark. Nifty‘s major support is at 17161 mark and below the same, the next big support is at 16911 mark. For Tuesday’s session, Nifty’s major hurdle is seen at 17507, while buying is advised only above the 17757 mark.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has made a lower top in the short-term framework with a downgap. The initial target on the down side is 16922 which is 38.2% retracement of the full rise from the low of 15183 and also 123.6% extension of the earlier fall from the high of 17992. 17487 on the upside could be the resistance in the near term.
Om Mehra, Technical Associate, Choice Broking
Technically, Nifty has closed on lower with huge gap down and this has changed that structure to a lower low and lower high. On the downside, 17200 is a good support level which might hold the current downtrend for a while on account of an immediate recovery. OI Data indicates, on the call side the highest OI witnessed at 17700 followed by 17500 strike prices while on the put side, the highest OI was at 17200 followed by 17000 strike price. On the other hand, Bank nifty has support at 37400 levels while resistance at 39000 for the next day. Short-term consolidations would make a larger uptrend healthier and should not be construed as negative, rather use dips as an incremental buying opportunity in quality stocks.