Domestic indices ended Thursday’s volatile session in the red after RBI MPC kept the key repo rates unchanged and raised the inflation forecast. The NSE Nifty 50 tanked 89.45 points or 0.46% to 19,543.10 and BSE Sensex sank 307.63 points or 0.47% to 65,688.18. In sectoral indices, Bank Nifty plunged 338.90 points or 0.76% to 44,541.80, Nifty FMCG tumbled 0.91%, Nifty Pharma fell 0.74, Nifty PSU Bank plunged 0.81% while Nifty Media jumped 6.63%. The top gainers on Nifty 50 were Adani Enterprises, Adani Ports, IndusInd Bank, Titan and ONGC while the losers were Asian Paints, Kotak Bank, Britannia, ITC and Nestle India.
“Markets remained volatile on the weekly expiry day and lost nearly half a percent. After the initial downtick, Nifty oscillated in a range i.e. 19495-19625 and finally settled around the 19543.10 levels. The majority of sectors traded in tandem wherein FMCG, pharma and banking were the top losers. The broader indices too witnessed profit taking and ended in the red,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Where are NSE Nifty 50, Bank Nifty headed?
Pressure to persist until Nifty trades below 19630–19670
“The Nifty opened on a flat note and has witnessed yet another extremely volatile day of trade today. It closed in the negative down 80 points. On the daily charts, we can observe that the Nifty has faced resistance at the falling trend line, and the 20-day moving average is placed in the zone 19,630 – 19,670. The Nifty was unable to witness follow-through buying and traded with the range 19,645 – 19,467 of the previous trading session. Until the Nifty trades below the zone 19,630 – 19,670, we can expect the pressure to persist,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
“The momentum set up on the daily and hourly time frame charts are providing divergent signals which can lead to a consolidation in the short term. Overall, the trend is still negative, and we expect the nifty to target levels of 19,100 from a short-term perspective,” Jatin Gedia added.
Bank Nifty price, momentum indicates further downside
“Bank Nifty witnessed selling pressure from the key hourly moving averages placed in the range of 45,000 – 45,100. The daily and hourly momentum indicator has a negative crossover which is a sell signal. The Bank Nifty has decisively closed below the 40-day moving average which is a sign of weakness. Thus both price and momentum indicators is suggesting a further downside over the next few trading sessions. On the downside 44,000 is the short-term target,” Jatin Gedia added.