Sensex logs losses again, Nifty to remain under selling pressure below 16350

Sensex logs losses again, Nifty to remain under selling pressure below 16350

Domestic markets closed the week deep in the red as geopolitical worries clubbed with supply chain turbulence marred investor sentiment. S&P BSE Sensex tanked 769 points or 1.4% to close at 54,333 while the NSE Nifty 50 was down 252 points or 1.53% at 16,245. Bank Nifty closed 1.5% lower at 34,407. Broader markets ended in red along with India VIX, which closed 0.71% lower. Dr Reddy’s Lab was the top Sensex gainer, up 2.78% accompanied by ITC, Tech Mahindra, and Ultratech Cement. On the other hand, Titan, Maruti Suzuki, and Asian Paints were the top laggards. 

Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities –

“Technically, post sharp pull-back rally the Nifty took the resistance near 16800 and corrected sharply. It made a couple of attempts to clear the resistance of 16800 but due to constant profit booking at higher levels, it failed. For the traders, 16350 -16400 would be the immediate resistance level. Above the same, Nifty could move up to 16550 and any further upside could lift the index up to 16700. On the other side, as long as the index is trading below 16350, the selling pressure is likely to continue. Below which, the correction wave will continue till 16000-15900.”

Rupak De, Senior Technical Analyst at LKP Securities –

“Nifty slipped lower after a few days of consolidation on the daily timeframe; which will heighten the possibility of falling below the 16000 mark over the short term. Immediate support is seen at 161000-16000 bands. On the higher end resistance seen at 16500.”

Manish Shah, Independent Technical Analyst –

“A pattern of lower-highs and lower-lows is still intact and the conclusion is that barring some unknown and unforeseen event Nifty could continue to trade lower if it holds below 16200.  Expect Nifty to decline towards 15800-15700 if a break below 16200 holds. The current move on the downside in Nifty is extended and in normal circumstances, this would be a play for reversion to the mean.  On the upside, a move above 16700 could trigger a rally to 17000 and if there are any major announcements over the weekend the markets could move higher.”

Palak Kothari, Research Associate, Choice Broking –

“Technically, Index has formed a bearish candle on a weekly time frame which suggests weakness in the counter. Furthermore, Index has been trading with lower highs-lower low formation from the last 5 weeks which suggest a southward journey in the upcoming day. The index can test the physiological level of 16000 breaching below it can show 15800-15700 levels while upside resistance comes at 16800 levels. On the other hand, Bank nifty has support at 34000 levels while resistance at 35000 levels.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Global bourses are witnessing a sharp sell-off as reports of Russian attack on Europe’s biggest nuclear plant in Ukraine kept tension levels elevated. Rising oil prices along with uncertainties on supply change disruption have instilled fears that inflation could cross RBI’s tolerance level, though temporarily. The domestic market, however, trimmed its losses as buying was witnessed in IT and Pharma stocks.”

Check the source here –Source, Financial Express.