Sensex dives 764 points, Nifty still in downtrend, may test 16800 next week

S&P BSE Sensex ended 764 points or 1.31% lower at 57,696 points while NSE Nifty 50 closed 205 points or 1.18% in red at 17,196.
(Image: REUTERS)

Bears once again regained control on Dalal Street on Friday led by heavy selling in heavyweights such as Reliance Industries and Bank stocks. S&P BSE Sensex ended 764 points or 1.31% lower at 57,696 points while NSE Nifty 50 closed 205 points or 1.18% in red at 17,196. Power Grid was the top loser on Sensex, down 4%, followed by Reliance Industries, Asian Paints, and Kotak Mahindra Bank. Larsen & Toubro was the top gainer on Sensex, up 0.79%, followed by IndusInd Bank, Tata Steel, Ultratech Cement, and TCS. Bank Nifty fell 0.85%. India VIX closed with gains along with smallcap indices. 

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Nagaraj Shetti, Technical Research  Analyst, HDFC Securities –

“The near term trend of Nifty continues to be down and the recent pullback rally of a downtrend seems to have completed. There is a possibility of further weakness down to 16800 levels by next week. Immediate resistance is placed at 17300-17350 levels.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments-

“The Nifty failed to keep above the 17400-17500 zone which is a bearish signal. We are resisting at higher levels and therefore the upside is definitely capped in that region. Unless we do not get past the patch of 17400-17500 on a closing basis, we won’t really see a meaningful upside rally. If the markets were to break 17100 next week it would be a matter of concern as there is every possibility we re-enter the current bear trend.”

Rohit Singre, Senior Technical Analyst at LKP Securities-

“Index closed a week at 17197 with gains of more than one percent and formed a doji sort of candle pattern on weekly chart after two bearish candles which hint indecision in the markets. Good demand zone for nifty is already formed near 17100-17000 zone & holding above said levels one can expect index to march towards 17500-17600 zone in near term but if failed to hold then more profit booking can push index to much lower levels, immediate hurdle is coming near 17300-17440 zone.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, the index has formed an open bearish Marabozu candle which points out a weakness for the next trading sessions. Moreover, the index has taken support from 100 DMA which points out sustained above the show upside momentum. Furthermore, the index has taken support from the rising trend line as well as the index has been trading with higher highs & lower lows from the last 3 trading sessions which points out bullish movement intact. At present, the Index has support at 17000 levels while resistance comes at 17500 levels. On the other hand, Bank nifty has support at 35300 levels while resistance at 37000 levels.

Ajit Mishra, VP – Research, Religare Broking –

“We’re seeing a roller coaster ride in markets across the globe due to the news flow around the new COVID variant and we don’t expect any relief soon. Participants have no option but to align their position accordingly and prefer hedged positions. Investors should not worry much about these fluctuations and use the further dip to add quality stocks in a staggered manner.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Following a positive opening, benchmark indices gave up all gains led by losses in heavyweights in anticipation of the RBI meet next week. Meanwhile, investors were also cautious after India reported Omicron cases. RBI’s monetary policy meeting will be a key market driver as investors await MPC’s policy decision which is broadly expected to hold an accommodative stance considering the uncertainty surrounding the new variant.”