Sensex, Nifty tank in dying hour of trade; F&O expiry, caution ahead of Jackson Hole symposium pull D-St lower | The Financial Express

Sensex, Nifty tank in dying hour of trade; F&O expiry, caution ahead of Jackson Hole symposium pull D-St lower

S&P BSE Sensex tanked 310 points or 0.53% to settle at 58,774 while the NSE Nifty 50 index was down 82 points or 0.47% on closing bell at 17,522.

Sensex, Nifty tank in dying hour of trade; F&O expiry, caution ahead of Jackson Hole symposium pull D-St lower
Sensex and Nifty dived on the F&O expiry session. (Image: REUTERS)

Dalal Street witnessed a volatile futures & options expiry session on Thursday as headline indices cut all gains and turned red in the dying hour of trade. S&P BSE Sensex tanked 310 points or 0.53% to settle at 58,774 while the NSE Nifty 50 index was down 82 points or 0.47% on the closing bell at 17,522. India VIX zoomed 6% to settle above 19 levels. Maruti Suzuki India was the top gainer, up 0.46% on Sensex, followed by SBI, Dr Reddy’s, Titan, and Wipro. Bajaj Finance was down 1.8%, accompanied by Infosys, TCS, and Power Grid. Bank Nifty closed below 39,000 but broader markets were mixed. NSE Midcap 50 was up 0.14% on closing while Smallcap 50 gained 0.70%.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“Amid heightened volatility, investors pruned their long positions on the F&O expiry day due to the uncertain global economic scenario. There are concerns that Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday would focus on more rate hikes to rein in inflation. Also, benchmark indices had come close to slipping into negative zones in the last two sessions, and hence correction was on expected lines.”

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty fell on Aug 25, snapping a two-day rise, on the monthly F&O expiry day, disregarding the mild gains in markets elsewhere. Nifty has formed a bearish engulfing top on daily charts and seems to have formed a lower high on short-term basis. Unless the high of 17727 is breached, Nifty could witness declines/sell on rallies. A downward breach of 17345 could lead to an acceleration in the fall.”

Also Read: Key structural themes to aid corporate earnings, prefer financials, auto stocks over IT, energy

Vinod Nair, Head of Research at Geojit Financial Services –

“Ahead of the Jackson Hole symposium, investors across the world are eagerly expecting the Fed chair’s speech to evaluate the outlook for monetary policy and determine whether the central bank can achieve a soft landing for the economy. Crude prices rose as Saudi Arabia suggested that OPEC+ supply may be reduced to address market instability. Although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.”

Mohit Nigam, Head – PMS, Hem Securities –

“As traders chose to book profits at higher levels in the late afternoon session, the domestic equities barometers reduced their gains. Investors were looking for hints about the direction of monetary policy in the European markets as they traded higher as they awaited the minutes of the ECB’s most recent policy meeting later in the day and Federal Reserve Chair Jerome Powell’s important speech on Friday. On the technical front, immediate support and resistance in Nifty 50 are 17400 and 17600 respectively. Bank Nifty immediate support and resistance are 38200 and 39500 respectively.”

Also Read: Syrma SGS Tech IPO listing day strategy: D-St debut on 26 Aug, check grey market premium; buy, sell, hold?

Rupak De, Senior Technical Analyst at LKP Securities –

“Nifty formed an engulfing pattern after two days of positive move setting a stage for a bearish reversal. The momentum indicator RSI is also pointing toward a negative momentum in the near term. On the lower end, 17480 is likely to act as initial support; a fall below 17480 may take the index towards 17350. Below 17350 the Nifty may drift down towards 17000-16950. On the higher end, resistance is visible at 17700.”

Palak Kothari, Senior Technical Analyst, Choice Broking –

“On a monthly expiry day, the Nifty opened on a green note and made an intraday high at 17726.50 level but in the dying hour of the session witnessed profit booking from a higher level and closed at 17522.45 level with a loss of 82.50 points. While Bank nifty closed the session at 38950.75 with a loss of 87.75 points. PUT Call Ratio (PCR) of 1st Sept expiry stood at 0.76 suggesting bears have taken charge. The momentum indicator stochastic was traded with a negative crossover on an Hourly time frame which suggests weakness in the counter.”

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 25-08-2022 at 16:17 IST