BSE Sensex and NSE Nifty 50 ended nearly 2 per cent down on Friday, on the back of fears of a global recession. Both the indices have turned negative for 2022 with Friday’s fall. Today’s nearly 2 per cent plunge has led to an erosion of Rs 4.83 lakh crore market cap of BSE-listed companies. BSE Sensex tanked 1.7 per cent or 1,021 points to 58099, while NSE Nifty 50 index plunged 1.8 per cent or 302 points to end at 17327. Stocks of HDFC Bank, Reliance Industries Ltd (RIL), ICICI Bank, Housing Development Finance Corporation (HDFC), State Bank of India, among others dragged the index the most. Broader market indices underperformed the equity frontliners. S&P BSE MidCap ended 2.3 per cent or 588 points at 25,271, while S&P BSE Smallcap index plunged 2 per cent or 567 points to settle at 28,813.
Kunal Shah, Senior Technical Analyst, LKP Securities
The Bank Nifty index last week witnessed extreme selling pressure from the higher levels after the key event of the US FED. The index breached the crucial support of 40,000 and closed below it, confirming the breakdown and activating the sell-on-rise mode. The index remains in a sell-on-rise mode with hurdles at 40,500 and the next support is visible at 39,000.
Deepak Jasani, Head of Retail Research, HDFC Securities
After remaining resilient against the global weakness in equities, Nifty gave in over the past three sessions. Nifty fell sharply for the second consecutive week (down 1.16%), breaking some key technical levels on the way. 17166 is the next support for the Nifty post which a sharper fall could ensue. 17490 could be the resistance for the Nifty in the near term.
Ajit Mishra, VP – Research, Religare Broking
Markets are finally witnessing pressure after showing resilience for quite some time and indications are pointing towards further decline. The Nifty index has the next crucial support at the 17,100 zone. Since most sectors are trading in tandem with the benchmark, it’s prudent to maintain short positions also. Investors, on the other hand, should utilise this phase to accumulate quality stocks in a staggered manner.
Vinod Nair, Head of Research, Geojit Financial Services
A rise in the US 10-year bond yield and a strong dollar index influenced FIIs to flee emerging markets. A fall in liquidity in the banking system, a weak currency and a current premium valuation have set the market outlook bearish for the near term. With aggressive monetary policy action by central banks, the global growth engines are in a slowdown mode, whereas India is currently in a better position with a pickup in credit growth and an uptick in tax collection. The current volatility might persist for a while. Investors are advised to wait and watch until the dust settles.