Bears continued to pull domestic equity markets lower amid a global sell-off on Friday. Domestic equity markets closed in with losses with S&P BSE Sensex ending down 0.54% at 55329 while the NSE Nifty 50 closed at 16450, falling 0.71%. Tata Steel was the worst Sensex performer, nose-diving 8.2%, followed by State Bank of India, Dr Reddy’s Laboaratories, and Kotak Mahindra Bank. HUL jumped 5.4% to close as the top Sensex gainer, followed by Asian Paints, Nestle India, and Bajaj Finance. Bank Nifty fell 1.46% on Friday, managing to close just above the 35,000 mark. Broader markets continued with their correction as Nifty Midcap 50 tanked 3% and Nifty Smallcap 50 fell 2.5%. India VIX soared 8.6% to closed at 14 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities-
“Downtrend in the Indian equity markets accelerated on Aug 20 following global cues. Nifty opened gap down in line with the losses in the Asian markets over Aug 20 and Aug 19. Nifty snapped a two week winning streak and ended lower by 0.48%. In the process it formed a doji like pattern on weekly charts suggesting indecision at higher levels. Over the week, FMCG and IT were the main gainers while Metals, Media, PSU Bank and Realty lost the most. Global worries (Fed withdrawing stimulus, Delta Variant spread, Slowing global growth and China’s regulatory tightening) are impacting sentiments of investors in India. The broader market rally seems to be fizzling out. Nifty could remain in the 16540-16280 band for the better part of the coming week.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Bears took control of today’s volatile session as weak cues from the global markets triggered selling across all sectors except FMCG. Fast spreading delta virus, Fed’s taper plans and China’s ongoing regulatory crackdown forced global markets to trade with cuts. Though the selling was broad-based, metal stocks were most affected due to a sharp plunge in iron ore futures across the world.”
Rohit Singre, Senior Technical Analyst at LKP Securities-
“Index opened a day with a strong gap down on weak global cues and closed a day at 16450 with loss of nearly one per cent. The index reached to its previous breakout zone & going forwards it will act as good support zone 16350-16250, if managed to hold above-mentioned support zone then one can expect a good bounce towards immediate resistance zone of 16500-16600 zone where one can again lock their longs gains on immediate basis also on overall basis 16500 zone will act as make or break zone on the higher side.”
Sachin Gupta, AVP, Research, Choice Broking-
“Technically, the Nifty index has confirmed a breakdown of the Dark Cloud Cover Candlestick pattern, which indicates some correction in the counter. A momentum indicator turned lower from the overbought zone while Stochastic has suggested negative crossover. However, on the four hourly charts, the index has settled above 21-EMA, which acts as immediate support for the counter. At present, the nifty index is finding the key resistance at 16700 levels while immediate support is at 16250 levels.”
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