Domestic indices ended Friday’s trading session in the red. The NSE Nifty 50 tanked 114.80 points or 0.59% to 19,428.30 and BSE Sensex sank 363.53 points or 0.56% to65,322.65. The broader markets also ended in the red, with the Nifty 100, Nifty 200 and Nifty 500 ending lower by 0.5%. Nifty Smallcap fared better, ending lower by 0.18%. In sectoral indices, Bank Nifty tumbled 342.70 points or 0.77% to 44,199.10, Nifty FMCG sank 0.73%, Nifty Pharma sank 1.45%, Nifty Media tanked 1.83% and Nifty IT fell 0.16%, while Nifty PSU Bank soared 1.25%. The top gainers on Nifty 50 were HCL Technologies, Power Grid, Titan Company, Tata Steel and UltraTech Cement while the losers were IndusInd Bank, SBI Life Insurance, UPL, Tata Consumer Products and Asian Paints.
“Markets traded under pressure and lost over half a percent, in continuation to the prevailing corrective tone. After the initial fall, Nifty hovered in a range but selling pressure in the final hours pushed the index further lower. Eventually, it settled closer to the day’s low at 19,428.30 levels. Most sectors traded in sync and ended in the red wherein pharma, financials and FMCG were among the top losers. The broader indices too drifted lower and lost nearly half a percent each,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty 50 support at 19350–19290; resistance at 19530–19500.
“The Nifty opened on a flat note and has drifted lower throughout the day to close around the lows for the day down 100 points. On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and broken down from the inside bar pattern formed in the previous trading session on the downside. The Nifty is likely to witness continuation of the selling pressure and with both the daily and hourly momentum indicators having a negative crossover it is likely to be trending moves on the downside. On the downside we expect the Nifty to target levels of 19,100. The crucial support zone on the downside is placed at 19,350 – 19,290 and on the upside, resistance is placed at 19,530 – 19,500,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty short-term target at 44000
“Bank Nifty has decisively broken the 44,500 – 45,000 range on the downside indicating weakness. The momentum indicator has a negative crossover which is a sell signal. Thus both price and momentum indicators are suggesting a further downside over the next few trading sessions. On the downside 44,000 is the short-term target,” Jatin Gedia added.