Sensex, Nifty snap gaining streak, end in red; here’s what experts make of today’s trade

Domestic benchmark indices snapped their gaining streak on Friday and finished the day’s trade in the negative territory. On the closing bell, S&P BSE Sensex was 0.39% lower at 54,277 points while Nifty 50 fell 0.35% to close at 16,238. Reliance Industries was the top laggard on Sensex, falling 2%, followed by Ultratech Cement, Tata Steel, HCL Technologies, and State Bank of India. On the other end of the table, IndusInd Bank jumped 2.8% to finish as the top Sensex gainer, followed by Tech Mahindra, Bharti Airtel, and Maruti Suzuki India. Bank Nifty was down 0.07% failing to regain 36,000 levels. Broader markets were mixed on the closing bell with certain midcap and smallcap indices closing in the green. India VIX fell 2%.

Vinod Nair, Head of Research at Geojit Financial Services –

“Following a flat opening, the domestic market fell into the red as profit booking was witnessed in key sectors like Banking after the announcement of RBI monetary policy. Negative cues from Asian markets also added pressure on the domestic market. The policy was in line with market expectations, RBI continued to advance its super-easy monetary policy keeping its focus on economic recovery. On the side-line, the CPI forecast was increased to 5.7% from 5.1% for FY22. High global inflation has  started to impact other emerging markets’ monetary policy & currencies, some have increased rates while others are planning to increase the rates  in the future.”

Nagaraj Shetti, Technical Research  Analyst, HDFC Securities –

“The Nifty seems to have started consolidation or minor downward correction from the highs, as anticipated and this consolidation movement is likely to extend towards early part of next week. The important lower supports to be watched for next week around 16200-16100 levels and that is going to be a buy on dips opportunity. We expect sharp upside bounce from the dips by mid to later part of next week. On a decisive move above 16350, Nifty may head towards 16500 levels.”

Sachin Gupta, AVP- Research, Choice Broking –

“Technically, the benchmark index is trading in a bullish trend with higher highs & higher lows formation. In the recent candle, it has formed a Bearish Candlestick at the top of the trend, which indicates some correction in the index. Moreover, the nifty50 index also slipped below the key level of 16300 & Upper Bollinger Band formation. A momentum indicator RSI is hovering near the overbought zone. However, MACD & Stochastic is still showing further strength with positive crossover. At present, the nifty index has resistance at 16350 levels while support comes at 16100 levels.”

Nirali Shah, Head of equity research, Samco Securities-

“Nifty50 index crossed lifetime highs and closed the week on a positive note one notch above its consolidation zone. The overall outlook has turned bullish for the time being since it has taken a decisive direction on the upside after sideways consolidation. If all goes as planned, Nifty might be headed towards levels of 16500 with no immediate resistance at higher levels and bulls all charged up crushing the call sellers. In the event of a corrective dip, its immediate support now lies at 16150.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

“Nifty traded in a very small range of around 110 points. After its recent upmove Nifty has been consolidating since the last 2 trading sessions. Today Nifty made an inside bar , which means it traded inside yesterday’s high and low. The trend in nifty remains bullish. It has strong supports at 16200, 16150 and 15950 levels. Nifty may test 16400 and 16450 once it crosses its resistance of 16350.”