BSE Sensex and NSE Nifty 50 ended more than 1 per cent down, each, on Friday, as growth concerns weighed on investor sentiment. BSE Sensex tanked 652 points or 1.08% to end at 59,646.15, while NSE Nifty 50 points ended at 17758, down 198 pts or 1.10%. Index heavyweights such as Reliance Industries Ltd (RIL), ICICI Bank, HDFC Bank, Housing Development Finance Corporation (HDFC), and Bajaj Finance were among top draggers on the S&P BSE Sensex. Broader markets also fell in Friday’s trade. S&P BSE MidCap index lost 1.3 per cent or 321 points to end at 24, 966, while S&P BSE SmallCap index finished trade nearly one per cent or 263 points down at 28,175.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sharp upmove in the last few weeks, the Nifty has finally reversed down sharply on Friday and the short term chart pattern signal more weakness ahead. As per the indications of smaller to larger chart pattern, one may expect Nifty to slide down to 17300 levels (23.6% fibonacci retracement of June bottom to Friday’s high) in the next 1-2 weeks. Immediate resistance is placed around 17850 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Equity market started the week on a positive note, but the correction on Friday erased most of the weekly gains. BSE Midcap and BSE Small cap index outperformed the BSE-30 and Nifty-50 index. Most sectoral indices saw marginal gains during the week. Recent market rally possibly reflects increasing expectations about peaking of inflation, commodity price correction and decent earnings visibility. India’s July 2022 CPI inflation saw moderation. Further, some decline is being witnessed in oil prices. Q1FY23 results were broadly on expected lines. FPIs flows have started to turn favorable.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty has fallen lower as the Indian equities failed to absorb the selling pressure around the 18000 mark. Besides, the index has formed a bearish engulfing pattern on the daily chart. The index has found support at the falling trend line. In the near term, the trend is likely to remain sideways to negative. However, a fall below 17700 may trigger a serious correction in the market. Support on the lower end is visible at 17500/17400. On the higher end, resistance is visible at 17900-18000. The Nifty Bank has formed a bearish engulfing pattern around the resistance zone on the daily chart. Besides, a fall from the consolidation range is also visible in the daily timeframe. However, the index has found support at the previous swing high on the daily chart. The trend is likely to remain sideways to negative in the near term. A fall below 38800 may trigger a serious correction in the banking space, support on the lower end is visible at 38800/38300. On the higher end, resistance is visible at 39500.
Vinod Nair, Head of Research, Geojit Financial Services
Profit booking amid weak global cues impacted domestic indices as concerns about interest rate hikes hung over the markets. Additionally, the recent rally of the dollar index and FIIs turning net sellers has surprised bulls. Broad-based selling was witnessed with the index heavyweights dragging the index further down.