Benchmark indices ended Thursday’s session in the red. The NSE Nifty 50 sank 67.80 points or 0.36% to 18,688.10 and BSE Sensex tumbled 310.88 points or 0.49% to 62,917.63. In sectoral indices, Bank Nifty plunged 544.40 points or 1.24% to 43,443.60, Nifty PSU Bank tanked 1.99% while Nifty Pharma jumped 1.42%. The top gainers on Nifty 50 were Apollo Hospitals Enterprise, Divis Lab, Dr Reddy’s Laboratories, Cipla and BPCL while the losers were Hero Motocorp, Wipro, IndusInd Bank, SBIN and Kotak Bank.
“The domestic market is responding to the Fed’s hawkish commentary, which suggests the possibility of 2 more rate hikes in the future this year, although they have currently opted for a halt. Due to concerns about inflation persisting above their target range, Fed officials have increased their rate projections by 47.5 bps for the end of 2023 to 5.6%. Despite weakness in the benchmark index, there is buying interest observed with the Nifty Mid-cap index trading at an all-time high,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty expected to target levels of 43000
“Bank Nifty has decisively broken the consolidation range of 44000–44500 on the downside and is likely to head lower over the next few trading sessions. In terms of price pattern, the Bank Nifty has formed a distribution triangle pattern which has been breached on the downside. On the downside we expect the Bank Nifty to target levels of 43000,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.