BSE Sensex and Nifty 50 settled in the red for the second consecutive session on the day of weekly options expiry ahead of Consumer Price Index (CPI) and Index of Industrial Production (IIP) data later today. BSE Sensex ended at 48,691, while the broader Nifty 50 index breached 14,700 on the downside to settle at 14,696. Broader markets also traded in the negative territory. S&P BSE MidCap index fell 0.90 per cent or 188 points to 20,744.80, while S&P BSE SmallCap index settled 0.62 per cent or 140 points down at 22,466. India VIX, the volatility index, settled at 20.08 level, down 1.26 per cent. After witnessing a sharp run-up in the recent weeks, a huge profit booking was seen in metal stocks.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty has pierced 14700 during the intra day session and managed to close around it. Hence traders would need to review the situation on Friday. If we are unable to hold this level, we could drop to 14400. On the upside, if we can get back above 14850, the index can scale up to 15000 and then 15200.
Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance Ltd
The weekly expiry ended in the negative territory in this truncated week. The bears were in absolute command in the second weekly expiry of May 2021. The banking and metal sectors dragged the Index whereas few of the Auto, PSU Banks, Pharma and IT were supporting the Index. The market breadth was absolutely in favor of the bears. From hereon, 14800 will act as a crucial resistance in the short term whereas 14600 is immediate support. A breakdown below 14600 will drag Nifty to 14400-14300 levels in the near term whereas a breakout above 14800 will take it back to 15000 levels. The Banknifty has a support at 32300 whereas resistance at 32800. A break of 32300 will drag it to 32000/31800 levels whereas a breakout above 32800 will take it to 33300-33500 levels.
Sumeet Bagadia, Executive Director, Choice Broking
On the technical front, the Index has been trading in Lower Highs & Higher Lows formation and tested the rising trendline, sustained above it can show bounce-back movement in the counter. Furthermore, the index has taken support from the 100-Hourly Moving Average as well as momentum indicator MACD has shown positive crossover, which points out the strength for the upcoming session. At present, the Index support comes at 14600 levels while the upside resistance seems to be at 14900.
Vinod Nair, Head of Research at Geojit Financial Services
Indian indices extended its losses due to concerns over hike in global interest rates and bond yield due to rising commodity prices and inflationary pressure. All major indices belled the day in negative terrain including metals while PSU banks and media stocks managed to stay afloat. International commodity prices will have to stabilize, to provide sustenance in the equity market.
Mohit Nigam, President, PMS, Hem Securities
Benchmark Indices closed on a negative note with Sensex -0.96% and Nifty 50 -1.04% mostly led by metal stocks which saw a profit booking with Nifty Metal closing at -2.97%. Large Financials and Commodities were under pressure too. Today was second day in a row where we ended in negative territory. 14500 remains a crucial support and market needs to close higher than 14800 to confirm positive momentum in near term. Tata Motors, Titan and Maruti were among the top gainers while Tata Steel, JSW Steel and Indusind Bank were among the top losers in Nifty 50 today.