Sensex falls 1,119 pts from day’s high, Nifty gives up 17,000; analysts expect more downside ahead

Sensex slipped 1,119 points from intra-day high to close at 57,064 while NSE Nifty 50 ended 70 points lower at 16,983.

Nifty midcap 50 gained 0.12% while Nifty Smallcap 50 jumped 1.34%. (Image: REUTERS)

Bulls failed to make a comeback on Dalal Street on Tuesday amid a volatile trading session. Sensex slipped 1,119 points from intra-day high to close at 57,064 while NSE Nifty 50 ended 70 points lower, giving up the 17,000 mark. Bank Nifty closed 0.78% lower while India VIX gained to end above 21 levels. Nifty midcap 50 gained 0.12% while Nifty Smallcap 50 jumped 1.34%. Power Grid was the top Sensex gainer, up 3.43%, followed by Titan, Bajaj Finserv, Nestle India, and Bajaj Finance. Tata Steel was the top laggard, down  3.87%, followed by Kotak Mahindra Bank, and Bajaj Auto.

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

“The markets failed to close above 17000 which is definitely a matter of concern for the bulls. This is a psychological break of the bullish sentiment. The Nifty can slide lower to achieve 16500 as its next target. Any up move will now be seen as an opportunity to sell the index for lower targets.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“After a strong volatile session index managed to close a day at 16983 with loss of nearly half percent and formed a bearish candle on the daily chart. The index managed to close below the 17k mark which hints at more weakness in coming sessions, now immediate support for nifty is coming near 16900-16800 zone and on the higher side stiff hurdle is formed near the 17120-17200 zone again any rise near the 17200 zone would be profit booking zone in longs overall structure will get positive only if we managed to sustain above 17300 zone till then sell on rise structure is intact.”

Palak Kothari, Research Associate, Choice Broking –

“The index has given closing below 21 & 9DMA which points out bears are active. Moreover, a daily Momentum indicator MACD & Stochastic were trading with a negative crossover which suggests bearish movement in the upcoming session. At present, the Nifty has immediate support at 16800 breaching below the same can show 16600-16500 levels while resistance comes at 17350 levels. On the other hand, Bank nifty has support at 35300 levels while resistance at 37000 levels.”

Vinod Nair, Head of Research at Geojit Financial Services

“Tracking positive closure of the US and European markets, domestic indices started the session on a strong footing following the US President’s announcement ensuring that economic lockdowns are currently off the table. However, the optimism was quickly substituted with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts’ advice to be cautious. Defying the market trend, IT and healthcare stocks along with mid and small caps traded with gains”

Yash Gupta, Equity Research Associate, Angel One –

 “The market continues its volatility this week also on the back of global market clues and updates on new covid virus variant i.e Omicron. Nifty up by 70 points (0.46%), today nifty made a high of 17323 and then corrected to 16989 levels. India VIX also trading on the higher side of the last 6 months average, trading at 20.5. We expect volatility to continue this week in the market and we suggest traders keep stop loss and long investors to buy in small quantities and distribute their buying in 3-4 tranches. WHO has also listed the Omicron virus in the list of “Virus of concern” as initial data suggests that it is more transmutable, WHO says it will take a couple of weeks to know more details of the Omicron virus.”

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