Sensex ends deep in red for second day straight, Nifty trend weak, expect more weakness ahead

S&P BSE Sensex ended 949 points or 1.65% lower at 56,747 while NSE Nifty 50 dived 284 points or 1.65% to close at 16,912.

India VIX zoomed 8.78% to finish at 20.08 levels. (Image: REUTERS)

For the second straight session, domestic equity markets witnessed bears take control, forcing benchmark equity indices to close in red amid rising cases of the new Omicron covid-19 variant. S&P BSE Sensex ended 949 points or 1.65% lower at 56,747 while NSE Nifty 50 dived 284 points or 1.65% to close at 16,912. All Sensex constituents closed in red with IndusInd Bank as the worst performer, falling 3.66%, followed by Bajaj Finserv, Bharti Airtel, TCS. Bank Nifty traded weak, falling 1.27%. Broader markets mirrored the fall. India VIX zoomed 8.78% to finish at 20.08 levels. 

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

“The markets continued its downward trajectory and has threatened the 16900 level. The index is heading towards the recent low of 16750-16780. If we break that, the Nifty can fall to 16400-16450.”

Sachin Gupta, AVP, Research, Choice Broking –

“On the technical front, the index has formed a bearish Marubozu candle, which points out a weakness for the next trading session. Moreover, the index has also settled below 100 DMA, which indicates further bearishness. In addition, the index has moved below the rising trendline, which is again a bearish confirmation. At present, the Index has support at 16700 levels while resistance comes at 17300 levels. On the other hand, Banknifty has support at 35300 levels while resistance at 37000 levels.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“Strong sell off continued on Monday as well & index managed to close a day at 16912 with loss nearly two percent and formed a bearish candle on daily chart for second consecutive session. Index reached to its good support zone of 16900 zone if managed to hold one can expect a good pull back but if failed hold then again we may see more drag down towards 16800-16700 zone which are next support zone on the downside, Immediate hurdle is coming near 17000-17100 zone again said levels will be profit booking levels in longs.”

Mohit Nigam, Head – PMS, Hem Securities –

“On the technical front, markets are trading around crucial support zone ~16800-850 levels and if it does not sustain above this level then we might see some volatility in the coming days . Immediate support and resistance for Nifty 50 is 16800 and 17250 and for Bank Nifty is 35350 and 36500 respectively.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

“Nifty closed around its day lows at 16912, down by over 280 points since yesterday’s close.  Nifty has support in the 16700- 16775 range and resistance in the 17100-17200 range. Overall bias in Nifty remains negative and traders are suggested to avoid taking fresh long positions,”

Vinod Nair, Head of Research at Geojit Financial Services

“Ambiguity surrounding Omicron continued to dent the morale of domestic investors ahead of the important RBI policy announcement on Wednesday. The domestic market is expected to be volatile as the near-term will be dominated by developments on new variant and, RBI and FED policy decisions. Market expects RBI to hold-on to the accommodative policy considering short-term uncertainties. However, a change is expected during H1 2022, which Indian market is factoring while global equities are trading mixed.”

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