Benchmark indices NSE Nifty 50 and BSE Sensex ended Friday’s session deeply in red. The Nifty 50 sank 105.75 points or 0.56% to 18,665.50 and Sensex tanked 259.52 points or 0.41% to 62,979.37. In sectoral indices, Bank Nifty fell 101.95 points or 0.23% to 43,622.90, Nifty Auto tumbled 1.03%, Nifty IT sank 0.89%, Nifty Metal plunged 2.48% and Nifty PSU Bank declined 1.18%. The top gainers on Nifty 50 were IndusInd Bank, Dr Reddy’s Laboratories, Asian Paints, Bharti Airtel and NTPC while the losers were Adani Enterprises, Adani Ports, BPCL, Hindalco and Divis Laboratories.
“Global central banks are currently focused on addressing inflation and have reiterated their commitment to reaching their target levels, as evidenced by the hawkish commentary from Powell and the unexpected rate hike by the Bank of England. The downward revision of earnings guidance by a major US tech company Accenture has raised concerns about potential earnings downgrades in the Indian IT sector, resulting in pressure on IT stocks. However, the domestic market is not expected to experience a significant correction due to favourable domestic economic indicators and correction in international commodities prices to sustain earnings growth on a QoQ basis,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty sentiment remains bearish as long as it stays below 44000
“Bank Nifty witnessed an ongoing battle between the bulls and bears throughout the week. The index faces resistance at the 44000 level, where the highest open interest is built up on the call side. On the other hand, support is observed at the 43500PE level, where put writers are active. A break on either side of this range is likely to result in a directional move for the index. However, the overall sentiment remains bearish as long as the index stays below the 44000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.