Domestic equity markets ended the weekly expiry session in the red as bears forced Dalal Street lower during the final hours of trade.
Domestic equity markets ended the weekly expiry session in the red as bears forced Dalal Street lower during the final hours of trade. S&P BSE Sensex ended 485 points or 0.92% lower at 52,568, while the 50-stock NSE Nifty ended at 15,727, down 0.96%. Index heavyweights such as Reliance Industries, ICICI Bank, and HDFC Bank contributed to the losses and closed in the red. Tech Mahindra, up 1.44%, was the top gainer on Sensex, followed by Bajaj Auto, Power Grid, HCL Technologies, and IndusInd Bank. Broader markets followed the benchmark and closed in the red. Nifty Bank ended 1.39% in the red. Only the Nifty IT index ended in the green. Volatility rose 11% higher during the day.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities –
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“Today’s after weak opening market witnessed consistent selling pressure at higher levels. In the second half of the day, the Nifty broke the important support level of 15780 and post breakdown the selling pressure was increased which is broadly negative for the Nifty. Among sectors, profit booking was seen in the metal and PSU banks stocks. Technically, on intraday charts, the Nifty has formed a lower top formation which indicates further weakness from the current level. For the next few trading sessions, 15780 should act as an important resistance level for the traders, below the same correction wave likely to continue up to 15635-15600. On the other side,, the immediate hurdle would be 15780 trading above the same. We can expect a continuation of the uptrend up to 15830-15860 levels.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities –
“The uncertainty of bulls at the crucial hurdle of 15900 continued, as the market tumbled down sharply from near the hurdle. Although Nifty placed at the minor support of 15700-15640 levels, a sharp follow-through weakness could open decline towards 15450 in the near term. Any pullback rally from here could initially find resistance at 15800 levels.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Pessimistic global cues dented the morale of Dalal Street with selling pressure seen across the sectors amid high volatility. Global markets were deep in the red, shadowing a weakness in the Asian markets following the widening Chinese tech crackdown and concerns over the country’s economic recovery. As we kickstart Q1FY22 results season, initial releases of the IT sector and a good number of lucrative IPOs will be in focus for the coming weeks.”
Arijit Malakar, Head of Research (Retail) Ashika Stock Broking –
“Markets closed negative on Thursday amid mixed global cues and caution ahead of TCS’ earnings results, with the company expected to report margin contraction because of higher wage costs. Growth worries again started to haunt the market after Fitch Ratings cut India’s GDP growth forecast for FY22 to 10% from 12.8% estimated earlier, citing localized lockdowns during the second wave of COVID-19. Some macro worries such as Chinese regulatory clampdown on tech stocks, rising Covid-19 virus cases, and worry about global central banks stance on monetary policy could change the sentiment of equity markets, globally. Baring IT index all the major indices closed in negative. At close, Nifty ended 151.8 points lower at 15,727.90, Sensex fell over 485.82 points at 52,568.9.”
Ajit Mishra, VP – Research, Religare Broking –
“Markets traded under pressure and lost nearly a per cent, pressurised by weak global cues. After the flat start, the benchmark gradually drifted lower and settled closer to the day’s low to close at 15,728 levels on the weekly expiry day. We suggest keeping a check on naked leveraged positions and wait for clarity. Investors, on the other hand, should not read much into the intermediate correction and continue with the “buy on dips” approach in fundamentally sound counters with a long term view.”