Domestic equity markets continued to move lower for the second consecutive trading session on Wednesday amid heightened volatility.
Domestic equity markets continued to move lower for the second consecutive trading session on Wednesday amid heightened volatility. S&P BSE Sensex closed 456 points or 0.74% lower at 61,259 while the NSE Nifty 50 index fell 0.83% to settle at 18,266. Broader markets fared worse than the benchmark. Nifty Smallcap 50 fell 2.42% while the Midcap 50 index slipped 1.19%. Bharti Airtel was the top gainer on Sensex, gaining 4%, followed by State Bank of India, IndusInd Bank and Bajaj Finance. Titan was the worst-performing Sensex stock, falling 2.62%, followed by HUL, NTPC, and Bajaj Finserv.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –
“Market sentiment was weak throughout the trading session on the back of heightened profit-taking by investors in stocks that had rallied sharply in recent sessions. After a muted opening, benchmark Nifty broke the 18400 intraday support level and thereafter maintained a negative stance throughout the day. In the last two days the Nifty corrected nearly 400 points and currently, it is trading near the important retracement support level. We are of the view that the index has completed one leg of correction, and 18150 and 18200 could act as sacrosanct support levels for the traders. Above the same, there is a strong possibility of a quick pullback rally up to 18350-18425 levels. On the flip side, dismissal of 18150 could increase further intraday weakness up to 18080.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities –
“The short term trend of Nifty continues to be negative and there is a possibility of some more weakness in the next 1-2 sessions before showing any convincing upside bounce from the lows. Important lower support is placed around 18150-18100 levels.”
Palak Kothari, Research Associate, Choice Broking –
“On the technical front, the index has confirmed the bearish engulfing candle pattern which points out weakness in the counter for the upcoming session. On a daily chart, the stock has been trading with a support of 9 Days Moving Average, which suggests sustained above the same can continue the uptrend. In addition, a momentum indicator RSI slipped from an overbought zone & Stochastic has suggested negative crossover. At present, the Index has immediate support at the 18200 level while an upside resistance is intact at 18600 levels.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Sharp selloff continued in the index for second consecutive day & closed a day at 18267 with loss of nearly one percent forming a bearish candle again on the daily chart. The index has reached the good support zone of 18200-18140 if managed to hold the above-said levels we may see some swift pullback so said levels will be buying area with overall stop out level of 18100 zone & on the higher side strong hurdle is formed near 18350-18450 zone, fresh move in the index may witness only if sustain above 18450 zone”
Mohit Nigam, Head – PMS, Hem Securities –
“Benchmark indices witnessed sell off for a second consecutive session. We believe the profit booking which was witnessed today is healthy for the market and any significant dip is a good opportunity to accumulate quality stocks. Immediate support for Nifty 50 is 18,100.”
Vinod Nair, Head of Research at Geojit Financial Services –
“The ongoing market correction is not an overreaction and can sustain in the near-term due to high valuations. However, in the future Indian corporates will benefit from the reforms & China plus one strategy which happened during 2020-21. Alongside, the long-term economy & market trend is intact due to further re-opening of the economy, low-interest cycle and fiscal & private spending. This correction will give leeway for value-buying, defensives and upcoming stocks & sectors that evolved from this new demand.”
Gaurav Udani, CEO & Founder, ThincRedBlu Securities –
“Since the last two trading sessions Nifty has been making lower highs and lower lows, which indicates the correction in Nifty may continue for the next few trading sessions. Nifty closed at 18280 , down by 130 points . Nifty may test 18250 and 18150 in the next few sessions. Traders in long position are advised to keep strict stoploss and book profits on every rise.”