Benchmark indices NSE Nifty 50 and BSE sensex concluded the weekly F&O expiry session in red. Towards the end of the session, Bank Nifty sank 400 points, hitting a day’s low of 43,706.15 and NSE Nifty 50 touched an intraday low of 18,464.55. The NSE Nifty 50 slipped 46.65 points or 0.25% settling at 18,487.75 and BSE Sensex tumbled 193.70 points or 0.31% to 62,428.54. In sectoral indices, Bank Nifty tanked 337.95 points or 0.77% to 43,790.20, Nifty Financial Service fell 0.63% while Nifty Pharma jumped 1.06%, Nifty PSU Bank rose 0.59% and Nifty Realty surge 0.98%. The top gainers on the Nifty 50 were Apollo Hospitals, Divis Lab, Bajaj Auto, Tata Motors and Hero Motocorp while the losers were Coal India, Kotak Bank, Bharti Airtel, SBI Life and HDFC Life.
“Despite challenges in the global economies, the domestic market displayed better than estimated Q4 earnings growth, along with 7.2% GDP growth in FY23, adding buoyancy to the market during the week. However, today the market closed with a marginal negative bias in which banks witnessed heavy profit booking. Investors turned cautious in anticipation of inflationary pressure in the US after raising the US debt ceiling. The US 10-year bond yield inched higher; the market is looking ahead to the trajectory of US interest rates to get more visibility,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
NSE Nifty 50 support at 18300-18350; resistance at 18650
“Nifty experienced a limited movement, staying within a certain range throughout the day. However, the closing saw a prevalence of selling pressure. The overall sentiment in the market is expected to remain negative until the Nifty index manages to surpass the 18,500 level. If the index fails to move back above this level, it could potentially lead to a correction in the market. On the downside, there is support expected around the range of 18,300-18,350. Conversely, resistance can be anticipated at the higher end around 18,650,” said Rupak De, Senior Technical at LKP Securities.
Bank Nifty support at 43500-43400; resistance at 44200
Bank Nifty remained under the control of bears as they maintained their grip on the market. Selling pressure was observed from the resistance zone around 44,200, suggesting that sellers were active at that level. If the index sustains below the level of 44,000, it could indicate further downside potential. In such a scenario, the index may witness a decline toward the support zone around 43,500-43,400.