Bears returned to Dalal Street on Friday amid weak global cues, forcing headline indices to close with losses. Sensex nosedived 714 or 1.23% to close at 57,197 while the NSE Nifty 50 index tanked 1.27% to settle at 17,171. Mahindra & Mahindra was the top gainer on Sensex, up 0.84%, followed by Bharti Airtel, ITC, and HCL Technologies. State Bank of India was the worst-performing stock, falling 3.2%, accompanied by HUL, and IndusInd Bank. Bank Nifty was down 2% at the end of the day’s trade while India VIX rose 2.8% to close above 18 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities –
“Equity markets in India remained torn between hopes for an early end to the geopolitical uncertainty and fears of faster monetary tightening. On daily charts, Nifty fell and filled the upgap made on the previous day, thus negating the bullishness. On weekly charts, Nifty fell for the second week in a row falling 1.74%. Nifty has formed a doji on weekly charts after a fall suggesting a possible halt to the down move, unless the lows of 16824 are breached. We could see sideways consolidation in the coming week between 16958 to 17392.”
Sumeet Bagadia, Executive Director, Choice Broking –
“Technically, after forming the evening star on the weekly chart, index has formed a Doji candlestick which shows indecisiveness among the trades. On the daily chart, it has failed to close above 17200 level, indicating traders will opt to sell on rise. Immediate support of 17000 has already been violated already, so next strong support would be on 16800 followed by 16600. Short term investors may opt for stock-specific action with positive bias. Overall, the Nifty index is having support at 16800 marks while resistance at 17550 followed by 17650, while Banknifty support is placed at 35500 followed by 35200 and resistance at 37200.”
Mohit Nigam, Head – PMS, Hem Securities –
“In the 50-share pack, Adani Ports was the biggest gainer, up 2.78% per cent. Hindalco was the top loser in the pack, down by 4.83 per cent. HUL, Cipla and SBI were other top loosers in the Nifty 50 pack. Crucial support for Nifty 50 is 17,000 while Nifty may face some resistance at 17,500.”
Kunal Shah – Senior Technical & Derivative Analyst at LKP Securities –
“The Nifty index witnessed fresh selling pressure at higher levels and closed near the day’s low. The bearishness will continue to remain as long as the index stays below the level of 17400. The downside levels of 17000-16800 will act as support and if breached will witness further downside. The Bank Nifty bears again attacked the index with full strength which led to a steep fall in the index. The near term support stands at 35800 and if it fails to hold will lead to a further slide down towards the level of 35000. The upside momentum will begin only above the level of 37000.”
Vinod Nair, Head of Research at Geojit Financial Services –
“The recent trend of the market was due to the release of high inflation data, the uncertainty surrounding Russia -Ukraine peace talks , volatile crude prices and weak quarter results. Fed chair’s comment of aggressive rate hike of 50bps by May made investors extra cautious. Inflation is not expected to remain elevated in the long term, a change from hyperinflation to normal is likely in the short to medium term in anticipation of improvement in supply. However, the short-term apprehensions are FIIs selling and elevated level of the Indian broad market.”
Ajit Mishra, VP – Research, Religare Broking –
“Markets will react to the ICICI Bank numbers in early trade on Monday. Besides, global cues like updates on the Russia-Ukraine crisis, and China’s COVID situation will also remain on the participants’ radar. The slide in the Nifty index has faded hopes for a directional move and we may see further consolidation ahead. Amid all, participants should maintain focus more on stock selection and overnight risk management.”
