Sensex, Nifty tank over 3.5% each this week; here’s what pulled indices lower, focus now on US-Fed meet

S&P S&P BSE Sensex staged a recovery in the dying hour of trade but closed 427 points or 0.72% lower at 59,037. NSE Nifty 50 ended at 17,617, falling 0.79%.

India VIX soared more than 6% on Friday. (Image: REUTERS)

Sensex, Nifty and broader markets fell for the fourth consecutive trading session on Friday as Foreign Institutional Investors continued to pull money away. S&P S&P BSE Sensex staged a recovery in the dying hour of trade but closed 427 points or 0.72% lower at 59,037. NSE Nifty 50 ended at 17,617, falling 0.79%. Bajaj Auto was the top Sensex gainer, up 3.7%, followed by Hindustan Unilever, Maruti Suzuki India, and HDFC. Bajaj Finserv closed 5.27% lower, accompanied by Tech Mahindra, Tata Steel, and Bharti Airtel. Bank Nifty along with broader markets closed in the red. while India VIX soared 6.18% to settle at 18.89 levels. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty ended the week with the worst losses in about two months. It fell 3.5% over the week. Advance decline ratio fell sharply to much under 1:1. This suggest that the nervousness has spread to the broader markets. The US Fed meet next week may not allow a sharp bounce early next week. 17288-17376 could be the next support while 17747-17798 could be the next resistance for the Nifty.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, the index has formed bearish engulfing on a weekly time frame which points to weakness in the counter. Furthermore, the index has given closing below 38.2% RL of a previous up rally which suggests further downside. Moreover, the index has been trading below 21&50-HMA with a negative crossover as well as a momentum indicator MACD & STOCHASTIC are trading with a negative crossover on the daily time-frame which suggests weakness in the counter. At present, the Index has support at 17450 levels, breaching below it can show 17350-17300 levels while resistance comes at 17800 levels. On the other hand, Bank nifty has support at 37000 levels while resistance at 38000 levels.”

Mohit Nigam, Head – PMS, Hem Securities –

“Constant selling by FIIs weighted down on the markets. As per provisional data available on NSE, Foreign institutional investors (FIIs) sold shares worth Rs 4,679.84 crore on January 20. Sentiments were impacted as data showed foreign portfolio investors have sold equities worth Rs 4,197 crore so far this month. On the technical front, the key resistance level for Nifty50 is 18,300 and on the downside 17,200 can act as strong support. Key resistance and support levels for Bank Nifty are 38,500 and 37,100 respectively.”

Vinod Nair, Head of Research at Geojit Financial Services

“’The ongoing selling by FIIs and weak Indian rupee forced the domestic market to continue surrendering its gains, with all major sectors trading under pressure. Weak sentiments from global markets due to persistent inflationary worries and weaker-than-expected earnings also added to the selling pressure. Along with global disturbances, the uncertainties regarding the upcoming budget will likely keep the domestic market highly volatile in the coming days.”

S Ranganathan, Head of Research at LKP securities

“Indices witnessed a 4% cut this week as FPI booked profits across large-caps and select high-quality mid-caps. Rising oil and input prices coupled with a moderating rural economy kept investors watchful as markets turned volatile. Most of the Sectoral Indices except the FMCG index  ended in the red on a big earnings day today of Reliance which helped indices recoup losses for the day in late afternoon trade.”

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