Sensex crashes as bears control D-Street, chartists see further weakness in Nifty, support at 16300

S&P BSE Sensex closed 1,189 points or 2.09% lower at 55,822 while NSE Nifty 50 index fell 371 points or 2.18% to settle at 16,614.

India VIX closed 16% higher, regaining 18.97 levels. (Image: PEXELS)

Bears ran riot on Dalal Street on Monday, forcing domestic markets to close deep in the red amid negative global cues. S&P BSE Sensex closed 1,189 points or 2.09% lower at 55,822 while NSE Nifty 50 index fell 371 points or 2.18% to settle at 16,614. Both the headline indices recouped some losses in the dying hour of trade but failed to emerge out of the negative territory. Hindustan Unilever was the top Sensex gainer, up 1.7%, followed by Dr Reddy’s Laboratories, making them the only two Sensex stocks to close with gains. Tata Steel ended 5.2% in red as the worst Sensex performer, followed by State Bank of India, IndusInd Bank, and Bajaj Finance. Bank Nifty closed 3.3% lower while broader markets mirrored the weakness. India VIX closed 16% higher, regaining 18.97 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“We almost hit the target of 16400 and the Nifty witnessed a bounce. The trend however continues to remain bearish and we could use higher levels to go short for the next target of 16150-16200. The upside for the index is currently capped and the trend is clearly down.”

Sachin Gupta, AVP, Research, Choice Broking –

“Technically, the nifty index has slipped below the Horizontal Line and prior swing low of 16782.40 levels, which indicates a further weakness for the coming day. Moreover, the index has also moved below Middle Bollinger Band formation & 100-Days SMA, which suggest a bearish trend. A momentum indicator RSI Stochastic & MACD has traded with negative crossover. At present, the Index has support at 16450 levels while resistance comes at 16800 levels. On the other hand, Bank nifty has support at 34000 levels while resistance at 35000 levels.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“Strong sell off has been seen on start of the week resulting index closed a day at 16614 with loss of more than two percent. Index has broken major supports zone of 16700-16800 which is going to act as fresh hurdle zone on immediate basis and on the other hand and nifty managed to give close above 16500 zone which hints on immediate basis good support for nifty is 16500 followed by 16400 zone, current chart structure as of now seems to be sell on rise.”

Mohit Nigam, Head – PMS, Hem Securities –

“On technical front 16,350 and 16,900 may act as immediate support and resistance for Nifty 50. For Bank Nifty 33,800 and 35,000 will act as near support and resistance.”

Vinod Nair, Head of Research at Geojit Financial Services

“India has been undergoing a phase of consolidation in the last 2 months. Currently sell-off is due to rapid rise in FIIs selling triggered by hawkish world central banks’ policy, cautious view on Indian market due to high valuation compared to peers and drop in retail inflows. We feel that we are reaching the last phase of this consolidation in terms of price correction. Some pockets have become fair however the overall market is still trading at the upper-hand which will continue to affect the performance of broad market, in the short-term. Long-term investors can chip into high quality stocks with a focus on defensives and India focused businesses.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.