The market witnessed sharp sell-off and benchmark domestic indices ended Thursday’s trading session in red. The NSE Nifty 50 tumbled 192.90 points, or 0.98%, to settle at 19,523.55, while the BSE Sensex tanked 610.37 points to 65,508.32. The border indices also settled in negative territory. The Bank Nifty index shed as much as 287.35 points, or 0.64% to 44,300.95. Among the other sectoral indices, Nifty IT tanked 2.19%, while FMCG, PSU Bank, Media, and Auto indices plunged over 1%.
The volatility in the market remained high as the volatility index (India VIX) closed up 10.68%.
Tech Mahindra, Asian Paints, LTIMindtree, Mahindra & Mahindra were the top laggards on the NSE Nifty 50, while Larsen & Toubro, Bharti Airtel, ONGC, Coal India, Power Grid Corporation and Axis Bank led the gains.
Ajit Mishra, SVP – Technical Research, Religare Broking expects said, “the prevailing weakness in heavyweights across sectors combined with feeble global cues is weighing on the sentiment. After the failed attempt to reclaim 19,750, we expect Nifty to inch further lower and test 19,400 however the major support is at 19200. Participants should align their trades accordingly and focus more on risk management.”
Technical View
Market observers believe that the 19,450 level will act as a floor for Nifty. Rupak De, Senior Technical analyst at LKP Securities said, “The Nifty has experienced a significant correction as it was unable to maintain levels above 19,750. On the daily timeframe, the most recent candle has engulfed the bodies of the preceding few days’ candles, which suggests a negative sentiment. The prevailing sentiment continues to favor selling during rallies. Looking ahead, the Nifty may decline towards 19,250, with immediate support situated at 19,450. Resistance is positioned at the higher end at 19,600.”
Bank Nifty Outlook
The Bank Nifty index shed as much as 287.35 points, or 0.64% to 44,300.95. “Strong resistance has formed at the 20-day moving average (20DMA) located at the 45,000 mark. The immediate support on the downside is situated at 44,200, and a breach below this level could trigger further selling pressure, potentially taking the index down to the 43,800 mark. In this scenario, it’s advisable to maintain a “sell on rise” approach as long as the index remains below the 45,000 mark,” Rupak De added.