Sensex plunges 764 points, Nifty still in a downtrend, could test 16,800 next week
The Bears regained control of Dalal Street on Friday, dragged down by strong sales of heavyweights such as Reliance Industries and bank stocks. S&P BSE Sensex finished 764 points or 1.31% down to 57,696 points while NSE Nifty 50 closed 205 points or 1.18% in the red at 17,196. Power Grid was the big loser on Sensex, in down 4%, followed by Reliance Industries, Asian Paints and Kotak Mahindra Bank. Larsen & Toubro was the top winner on Sensex, up 0.79%, followed by IndusInd Bank, Tata Steel, Ultratech Cement and TCS. Bank Nifty fell 0.85%. India VIX closed with gains as well as small cap indices.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities –
âNifty’s short-term trend continues to be downward and the recent pullback of a downtrend appears to be over. There is a possibility of further weakness down to 16,800 levels by next week. Immediate resistance is placed at the 17300-17350 levels.
Manish Hathiramani, Owner Index Trader and Technical Analyst, Deen Dayal Investments-
âThe Nifty failed to hold above the 17400-17500 area which is a bearish signal. We are resisting higher levels and therefore the upside is definitely capped in this region. Unless we break past the 17400-17500 patch on a close basis we won’t really see a significant bullish rally. If markets were to break through 17100 next week this would be a concern as it is entirely possible that we resume the current downtrend. â
Rohit Sigre, Senior Technical Analyst at LKP Securities-
âThe index closed a week at 17197 with gains of over one percent and formed a sort of doji candle pattern on the weekly chart after two bearish candles that suggest indecision in the markets. A good zone. of demand for nifty is already formed near the 17100-17000 area and holds above said levels, the index can be expected to move towards the 17500-17600 area in the near term, but if it fails to hold, so more reserve of profits can push the index to much lower levels, immediate the hurdle is approaching the 17300-17440 area.
Palak Kothari, Research Associate, Choice Brokerage –
âOn a technical level, the index formed a bearish open candle in Marabozu which signals weakness for the next trading sessions. Additionally, the index took support at 100 DMA indicating sustained bullish momentum above the show. Also, the index leaned on the uptrend line and the index traded with higher highs and lower lows of the last 3 trading sessions, indicating that the bullish movement is intact. Currently, the index has support at 17,000 levels while resistance stands at 17,500 levels. On the other hand, Bank nifty has support at 35,300 levels and resistance at 37,000 levels.
Ajit Mishra, Vice President – Research, Religare Broking –
âWe’re seeing a roller coaster ride in markets around the world due to the news flow around the new COVID variant and we don’t expect relief anytime soon. Participants have no choice but to align their positions accordingly and prefer covered positions. Investors shouldn’t worry too much about these swings and take advantage of the further downside to add quality stocks in a staggered fashion. “
Vinod Nair, Research Manager at Geojit Financial Services –
After a positive opening, the benchmarks abandoned any gains led by the heavyweight losses ahead of the RBI meeting next week. Meanwhile, investors were also cautious after India reported The RBI monetary policy meeting will be a key driver of the market as investors await the policy move from MPC, which is expected to largely take an accommodative stance given the uncertainty surrounding the new variant.