Nifty 50 and Bank Nifty ended the weekly options expiry in red on Thursday. Nifty 50 gave up 15,700 at closing while Bank Nifty ended at 34,684 levels. India VIX, the volatility index, cooled off 1.57 per cent to settle at 12.84 levels. A host of factors such as rise in new Delta and Delta plus variants of COVID-19 cases, weak economic data, and weak Asian cues dented market sentiment. The 30-share index BSE Sensex ended weak at 52,318.60, mainly dragged by losses in Infosys, HDFC Bank, Reliance Industries Ltd (RIL), and Housing Development Finance Corporation (HDFC). In the broader market, smallcap index outperformed th equity benchmarks, rising 0.32 per cent or 80.42 points.
Rohit Singre, Senior Technical Analyst, LKP Securities
Index closed a day at 15680 with small loss and formed a bearish candle for the fourth consecutive session. Index again reached to its good demand zone of 15650-15600 zone from where we have witnessed a good move previously from the said level any break below mentioned level can increase more profit booking in index, good resistance is coming near 15750-15840 zone above 15840 we may see good move in index.
Vinod Nair, Head of Research, Geojit Financial Services
Selling was triggered in the domestic market as investors remained cautious about the increasing covid cases especially in Asia. Despite the easing of restrictions, the manufacturing PMI data for June contracted to 48.1 from 50.8 in the previous month. However, the diminishing rate of domestic infection and progress in vaccination provided some comfort to the market. Positive auto sales numbers for June helped the sector to trade in positive territory.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty slipped into weakness in the early part of the session. It later shifted into a range-bound action that continued for the whole session. The opening upside gap has been filled completely. A reasonable negative candle was formed, that placed at the crucial support of 20 day EMA on the daily chart around 15680 levels. We also observe a formation overlapping negative candles over the last three sessions, which indicate range bound action and sell on rise opportunity in the market. Normally, formation of such patterns could eventually result in an upside breakout. As of now, there is no early sign of any upside bounce from the lows. Nifty continued to show choppy movement with negative bias and still there is no evidence of any upside bounce emerging from the lows. Nifty is currently placed at the important cluster support of 15650 levels and a move below this area could result in slide down to 15500 levels.
Mohit Nigam, Head, PMS, Hem Securities
Markets closed the trading day with slight profit booking as the other days of the week. NIFTY 50 closed at 15,680 down by 0.26% and Sensex closed at 52,318.60 down by 0.31%. The auto sales numbers for the month of June are out, with Maruti Suzuki, Tata Motors and M&M all showing a jump in the sales compared to the month of May 2021. The repetitive profit booking on all trading sessions of the week is signalling that bulls are not coming strong. Though with the positive notes in the market we still feel the further rally is intact. Nifty is getting closer to the support of 15,600 and will take further support at these levels for rising to newer highs in the coming trading sessions.