Benchmark indices NSE Nifty 50 and BSE Sensex ended Friday’s session deep in red. The Nifty 50 plunged 234.15 points or 1.17% to 19,745 and Sensex tumbled 887.64 points or 1.31% to 66,684.26. In sectoral indices, Bank Nifty sank 111.70 points or 0.24% to 46,075.20, Nifty IT tanks 1,274.85 points or 4.09% to 29,871.05, Nifty FMCG tumbled 1% while Nifty PSU Bank rose 0.25%. The top gainers on Nifty 50 Larsen & Toubro, ONGC, NTPC, State Bank of India (SBI) and Tata Motors while the losers were Infosys, Hindustan Unilever Ltd (HUL), HCL Tech, Wipro and TCS.
“The weak guidance from Infosys cast a shadow over the outlook of the Indian IT sector, causing a delay in Nifty’s pursuit of the 20,000 mark. While the heavyweights surrendered to the bears, the small caps demonstrated resilience. Global markets presented a mixed picture, with the US market struggling due to weak earnings, while UK retail sales exceeded expectations with a 0.7% MoM growth,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty support at 45900; resistance at 46350-46400
“The option data suggests that the market may remain range-bound as there is significant option selling observed at the at-the-money (ATM) strikes. The lower end support for Bank Nifty is placed at 45900. If the index falls towards this level and holds, it may act as a support, preventing further downside. On the other hand, the upside resistance is visible at the 46350-46400 levels. If the index manages to surpass this resistance area, it could signal further upward movement,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.