The Nifty-50 broke its five-day gaining streak on Wednesday on global weakness hitting the domestic market. Disappointing Chinese economic data and weak auto sales numbers triggered sell-offs in metal and auto stocks on domestic bourses. The finished down 363.05 points, or 1 per cent, at 35,891.52 while the Nifty lost 117.60 points, or 1.08 per cent, at 10,792.50.
All the 11 sectoral indices ended in the red. The Nifty Metal (-3.4 per cent) and Auto (-3.1 per cent) were the top losers. The Nifty Mid-cap and Small-cap were down 1.2 per cent and 1 per cent, respectively.
Technical view
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “The Nifty was literally on the cusp of surpassing its recent hurdle of10,924. But as market surprises us most of the times, it certainly left us clueless with such kind of selloff in the broader market. However, having said that, it would be too early to call it a reversal. Technically, Nifty has managed to find support precisely at the ‘200-SMA’ on the hourly chart. Hence, going ahead, Wednesday’s low of 10,735 would now be seen as a crucial support. On the higher side, a sustainable move beyond 10,810 would push the index back to test10,870–10,924 levels.
“Since, Wednesday’s correction was mainly a knee-jerk reaction to selloff seen in the global markets, one needs to keep a close watch on how things pan out globally and in case of some positive developments, it would certainly infuse strength in our market to break key hurdles.”
Market view
Jayant Manglik, president, Religare Broking, said: Post a decent upmove in the last few trading sessions, the equity benchmark indices declined led by negative global cues and profit taking at higher levels …There has been some encouraging developments on the global front with Trump signalling meaningful progress on trade talks with China, thereby easing tensions between the two nations. However, we continue to remain cautiously optimistic on the Indian market, as global headwinds in the form of economic slowdown would keep the market in check. Additionally, due to the lack of any domestic triggers, the market would take cues from US Fed chairman’s media interaction scheduled this week.
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