BSE Sensex and Nifty 50 ended over 1 per cent down, inline with sell-off in global markets on Friday, after US inflation rate jumped to 40-year high. BSE Sensex fell 773 points or 1.3 per cent to 58,153, while Nifty finished at 17374, down 231 points or 1.3 per cent. Index heavyweights such as Infosys, ICICI Bank, Housing Development Finance Corporation (HDFC), Tata Consultancy Services (TCS) contributed the most to the indices fall. Broader markets underperformed equity benchmarks today. S&P BSE Midcap index lost 1.8 per cent or 454 points to 24,251, and S&P BSE Smallcap index declined 2 per cent or 554 points to finish the trade at 28,692. India VIX, the volatility index, jumped 5.5 per cent to end at 18.68 levels.
Vinod Nair, Head of Research, Geojit Financial Services
Aggressive FII selling resulting from negative global cues wreaked havoc in the domestic market today. Globally markets traded in red amid mounting concerns of surging US inflation which fuelled fears of a hawkish rate hike by the central bank. US inflation surged 7.5% on an annual basis with the consumer price index for all items rising 0.6% in January. On the domestic front, all sectors were deep in red with IT, realty and PSU banks being the most affected.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty found resistance around 17635 and slipped lower towards the gap on the daily timeframe. On the daily timeframe, a red-bodied candle is visible. Once again, the index has slipped below the 50 EMA. The trend looks sideways to negative for the near term. On the lower end, support is visible at 17250-17265. On the other hand, Nifty needs to move beyond 17640 to change the current bearish trend.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
The rising US inflation has raised concerns that the Federal Reserve could soon initiate its rate hike decision, which created a lot of uncertainty among the global investors, including India. After 3 days of rising, investors liquidated their holdings as they fear the market could correct going ahead. The Nifty took support near 17050 but failed to sustain above the 20 day SMA which is broadly negative. Technically, the index is witnessing non directional activity near the 50 day SMA. However, on daily and weekly charts, it is holding higher bottom formation but at the same is consistently facing resistance at 20 day SMA. Hence, the market is likely to maintain non-directional activity in the near future. The immediate support would be 17300-17250 while 17600 and 17700 would act as a crucial hurdle for the bulls. Meanwhile, after a short-term correction, the Bank Nifty held the level of 20 days SMA. The structure suggests 38200 or 20 days SMA and 38000 would be the sacrosanct support for the index, and above the same uptrend momentum is likely to continue till 39500-400001.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the index has formed a Doji kind of Candlestick on a weekly chart which points out confusion between buyers & sellers. Furthermore, the index is trading below the middle band of Bollinger which suggests downside movement in the counter. On an Hourly Chart, the index has been trading below 21*50-HMA with the negative crossover which suggests weakness for next session. Moreover, the daily momentum indicator Stochastic as well MACD is also trading with negative crossover which adds weakness in prices. At present, the Index has support at 17130 levels while resistance comes at 17600 levels. On the other hand, Bank nifty has support at 38000 levels while resistance at 39000 levels.
Mohit Nigam, Head – PMS, Hem Securities
On the technical front 17,250 and 17,450 are immediate support and resistance in Nifty 50 respectively. For Bank Nifty 38,200 and 38,800 are immediate support and resistance respectively
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