Sensex, Nifty end lower on F&O expiry day, Bank Nifty settles above 40000 for 1st time; Nifty support at 18000

Sell-off continued due to weak Q2 results, bearish global market and profit booking in IT, metal and realty stocks

BSE Sensex and Nifty 50 ended lower for the third consecutive day on weekly F&O expiry day, as index heavyweights such as RIL and Infosys reeled under selling pressure. S&P BSE Sensex ended 336 points or 0.55% lower at 60,923, gaining 437 points from the day’s low. NSE Nifty 50 closed at 18,178, down 88.5 points or 0.48%. Bank Nifty made a record closing high, end above 40,000 for the first time ever, at 40,136.95. Index heavyweights such as Reliance Industries Ltd, Infosys, Tata Consultancy Services (TCS), Asian Paints, contributed the most to the indices loss. In the broader market, smallcap index underperformed the equity benchmarks, falling 0.7 per cent or 199 points to 28,680. S&P BSE MidCap index lost 0.4 per cent or 97 points to settle at 25,817. India VIX, the volatility index, cooled off nearly 2 per cent to settle at 17.98 levels. Analysts say that Nifty support now lies at 18,000. Investors can use any significant dip for buying opportunities to accumulate quality stocks.

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Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty has fallen for the third day; however, the volumes are falling and the advance-decline ratio is improving, though below 1:1. This could mean that the recent selloff or weakness is nearing the end. 18266-18350 could be the next resistance for the Nifty while 18030 could be a support in the near term.

Rohit Singre, Senior Technical Analyst, LKP Securities

The index opened a day with a good gap up but unable to hold highs for long & witnessed profit booking with given close at 18178 with loss of half per cent after showing a volatile session. In last one hour index has witnessed strong pull back from good support zone of 18100 which is going to act again good support area for coming sessions followed by 18k mark also longs can behold until nifty is managing above said levels and on the higher side immediate resistance is formed near 18280-18350 zone & fresh move possible only above 18400 zone.

Vinod Nair, Head of Research, Geojit Financial Services

Sell-off continued due to weak Q2 results, bearish global market and profit booking in IT, metal and realty stocks. However, the banking index, especially PSBs moved with confidence on the expectation of good quarterly earnings. High volatility forced foreign and domestic institutional investors to remain net sellers”

Mohit Nigam, Head – PMS, Hem Securities

We believe the profit booking which was witnessed today is healthy for the market and any significant dip is a good opportunity to accumulate quality stocks. Immediate support for Nifty 50 is 18,000.

Sachin Gupta, AVP – Research, Choice Broking

Technically, the index has taken good support at Middle Bollinger Band & 21 SMA on a four hourly chart. Moreover, a four hourly chart, indicates further support in the index. Moreover, it has also formed a Bullish Hammer Candlestick pattern, which suggests a bullish strength in the index. At present, the Index has immediate support at the 18050 level while an upside resistance comes around 18400 levels.