Sensex tanks to close in red, Nifty ends at 15,686; here’s what experts make of today’s trade

Sensex, Nifty closed in the red today.
(Image: REUTERS)

Domestic stock markets closed in the red on Wednesday. On the closing bell, Sensex was at 52,306 while the 50-stock NSE Nifty was at 15,686. Maruti Suzuki India once again ended as the top Sensex gainer surging 2.29%, followed by Titan Company and Bajaj Finserv. Only 8 of the 30 Sensex constituents ended in the green. Among the worst performers were Larsen & Toubro, Kotak Mahindra Bank, Tata Steel, and HDFC. Broader markets mirrored the benchmarks and closed in the red. India VIX surged 4%.

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Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities-

“The market witnessed a roller coaster ride, as it opened higher but lost momentum thereafter to close at the lowest point of the day. This could be due to the monthly & quarterly F&O contracts expiry and the AGM of Reliance Industries on Thursday. India Vix jumped and the Nifty/Sensex settled on the support of the 20-day SMA, which is at 15670/52250. The Nifty/Sensex was expected to find support between 15670/52300 and 15700/52400 levles but volatility was unimaginable. On Thursday, the markets would be a trading range of 15800/52800 and 15550/51700 levels. Below 15670/52250, the Nifty/Sensex would quickly drop to the level of 15550/51700. On the other hand, if the Nifty/Sensex trades above 15670/52250, then the market would move to the level of 15800/52800. One should be a level based trader.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities –

“The short term trend of Nifty is weak with range bound action. The overall market breadth and broad market indices are showing resilience compared to benchmark Nifty. The present weakness is expected to be over in the next 1-2 sessions and the market could bounce up again from the lows. Immediate support is placed at 15600 levels.”

Ajit Mishra, VP – Research, Religare Broking –

“Markets traded lacklustre and lost nearly half a percent, in absence of any major trigger. Firm global cues triggered an upbeat start but it couldn’t hold for long and gradually drifted lower as the day progressed. We’re currently seeing a time-wise correction in the market and it’s likely to end soon. The scheduled monthly expiry of the June month contracts combined with AGM of index heavyweight, Reliance, will keep the participants busy on Thursday i.e. June 24. We reiterate our advice to continue with the “buy on dips” approach until we see some sign of exhaustion or trend reversal.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Consolidation continued as lack of key triggers in the domestic market and flight of foreign funds influenced investors to stay on the side-line. Global markets remain mixed as FED’s reassurance on a slow pace in rates hike failed to get momentum in the market. All the sectors traded in red barring auto as all major manufacturers decided on a price hike. Easing lockdown restrictions and pick up in vaccination drive will aid economic activity, which is likely to be visible in the second half of the financial year.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index again showed some profit booking from its good hurdle zone and closed a day at 15687 with loss of half a per cent forming a bearish candle for second consecutive candle. On the hourly based chart its seem index is information of the double top which will get active below the 15500 zone so going forwards immediate supports are coming near 15600-15500 zone below 15500 we may see good selling pressure so that will be the final stop out level for nifty, fresh move possible only close above 15900 zone.”