Nifty, Sensex end in red amid high volatility; ‘use minor weakness to buy on dips’

Nifty, Sensex end in red amid high volatility; ‘use minor weakness to buy on dips’

Indian equity markets ended in red in a highly volatile session on Wednesday amid worsening geopolitical situation in Europe. The BSE Sensex index fell 185 points, or 0.33%, to end at 55,381 levels, while the NSE Nifty5 0 index shut shop at 16,523, down 62 points or 0.37%. Both the indices had touched intra-day lows of 55,091 and 16,439, respectively. In the broader markets, the BSE MidCap index slipped 0.1%, while the BSE SmallCap index added 0.62%. Sectorally, the Nifty IT index slipped over 1%, while the PSU Bank index added 0.9%. On the technical front, the key resistance levels for Nifty 50 are 16700-16800 and on the downside, 16350 can act as strong support, according to analysts.Vinod Nair, Head of Research at Geojit Financial Services

“Continuous rise in crude oil prices due to EU’s decision to partially ban Russian oil hindered global market. Indian economy registered a growth of 8.7% in FY22 but is expected to slow down in FY23 to 7.2%, as per the latest RBI forecast. Auto sales data, posted by major manufacturers, witnessed growth in passenger and commercial vehicle segments due to pick up in the construction sector however two-wheeler and tractor segments continued to remain under pressure.”

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

“Nifty trades with series support placed at 16500. Maintain positive bias above the same with resistance seen at 16800-17000. Breach of 16500 expected to invite some selling pressure. Overall medium term trend remains positive above 15500. Infra and banking expected to do well while IT and metals expected to consolidate.”

Mohit Nigam, Head – PMS, Hem Securities

“Indian benchmark indices ended the day on a negative note with Nifty50 closing at 16522 and sensex closing at 55,381. Benchmark indices made a cautious start amid mixed global market cues. Markets entered green terrain in the late morning session led by strong buying in Metal, PSU and oil and gas scrips. But soon the euphoria faded away as sell off in IT scrips dragged the market into negative terrain below the crucial levels of 16500. Though the markets recovered in the last session and closed above crucial levels of 16500. On the technical front, the key resistance levels for Nifty50 are 16700 and on the downside 16350 can act as strong support. Key resistance and support levels for Bank Nifty are 36200 and 35000 respectively.”

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“The sharp uptrend seen in the last few sessions is slowly fading away as the market is finding it difficult to find any real positive triggers. The concern areas like higher inflation, further rate hikes & persistent FII selling will keep the upside capped going ahead and we would continue to see bouts of volatility. Technically, one more time the Nifty found resistance near 16550. The index has now formed a lower top formation on intraday charts and bearish candle on daily charts, indicating strong possibility of further weakness from the current levels. For traders, 16450 would act as a strong support level, while there is a strong possibility of a fresh pullback rally if the index succeeds to trade above the same. Above which, it could touch the level of 16650-16700. Below 16450, uptrend would be vulnerable and chances of hitting 16350-16325 remains high.”

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty closed lower for the second consecutive session on June 1. Volumes on the NSE were lower than recent averages. Among sectors, Power, IT and Realty fell the most while Capital Goods, Metals and Banks rose the most. Smallcap index outperformed rising 0.69%. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) declined marginally in May to 54.6 from 54.7 a month back. Goods and Services Tax (GST) collections in India fell to Rs 1.41 lakh crore in May, down 16 percent from April’s all-time high of Rs 1.68 lakh crore. On a year-on-year basis, GST collections in May were up 44 percent.”

“Asian markets fluctuated Wednesday following losses on Wall Street and data reminding traders that inflation shows no sign of easing. European shares gave up early gains on Wednesday as weak German retail sales and slowing factory activity in the euro zone blew worries about economic growth amid record high inflation. Nifty has corrected the earlier upmove gradually and could see the next leg up soon. 16414 is an important support.”