The benchmark equity indices ended Thursday’s trading session in negative territory. NSE Nifty 50 closed at 19,253.80, while the Sensex closed the trading session at 64,831.41. Bank Nifty shed as many as 243.45 points or 0.55% to settle at 43,989.15. Smallcaps continued to gain, with Nifty Smallcap 250 and Nifty Smallcap 50 adding 1.04% and 0.36%, respectively. Nifty PSU Bank, FMCG, and Financial Services were among the top losers in the sectoral indices, while the gains were led by Nifty Realty and IT.
The top losers included Adani Enterprise, BPCL, Adani Ports, Britannia Industries, and Eicher Motors, while the gainers for the day included JRF, Maruti Suzuki, HDFC Life Insurance, Cipla, and Tata Steel.
“We are seeing a gradual fall in the index amid mixed global cues however buoyancy on the broader front combined with selective buying across sectors is compensating in the interim. Participants should continue with the stock-specific approach until we see a decisive sign of reversal in the index. Besides, keep a close watch on the global front for further cues,” Ajit Mishra added.
Nifty 50 technical view
“The Nifty faced persistent resistance at the 21-day Exponential Moving Average (21EMA), which resulted in a market correction. Two consecutive unsuccessful attempts to surpass the critical 21EMA level led to an increase in selling pressure. The overall sentiment remains pessimistic, with the likelihood of any upward rallies being met with selling activity. On the downside, the initial support level is placed at 19,200. If the index falls below the 19,200 level, it could potentially move towards the 19,000 mark. The sell on rise strategy is expected to favour the traders until the Nifty convincingly surpasses the 19,500 level,” said Rupak De, Senior Technical analyst at LKP Securities.
Bank Nifty to consolidate at 43600–44700
“Bank Nifty has also witnessed follow-through selling pressure and has closed in the negative for the second consecutive day. The daily and the hourly momentum indicators are providing a divergent signal and hence a consolidation is likely. Daily Bollinger bands are also contracting indicating that there could be some consolidation in the near term. The range of consolidation is likely to be 43,600 – 44,700,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.