Market Outlook- Nifty, Sensex end in red; markets following global cues, traders should restrict positions

Market Outlook: Nifty, Sensex end in red; markets following global cues, traders should restrict positions

Indian benchmark indices closed on a negative note on Friday. BSE Sensex dropped 316.94 points to settle at 61,002.5 while Nifty lost 0.5%, closing under the 18,000 level at 17,944. After the initial downtick, the Nifty index tried to pare losses but continuous selling in the banking majors combined with a downtick in the IT majors pushed the index lower. The broader markets also closed largely in the red, as Nifty Oil & Gas was the only sectoral gainer. Bank Nifty declined 1.2%, dragging the indices.Markets Decoded: Indian markets following global cues

Interest rates to remain high: Vinod Nair, Geojit Financial ServicesLack of major triggers in the domestic market is attracting global cues to dictate the market trend. The US market is facing an unfavourable combination of higher-than-expected inflation and a stronger job market. The PPI (Producer Price Index) in the US came in at 6.0%, in contrast to the expectation of 5.4%. This suggests that interest rates have not yet peaked and will remain elevated for a long period.

Nifty Technical View: Markets witnessing turbulence

Selling pressure to accelerate under 17,900: Amol Athawale, Kotak SecuritiesMarkets witnessed turbulence on the back of weak global cues as investors booked profit in banking, IT and telecom stocks. Rising inflation, US bond yields, and dollar index are once again creating a lot of uncertainty amongst the investors. For the bulls, 17,900-17,800 or 20 day SMA would act as a key support zone while 50 day SMA or 18,100 and 18,200 could be the immediate hurdle. On the flip side, the selling pressure could accelerate if the index slips below 17,800 and in case of further correction, it could slip to 17,700-17,650.

Nifty to remain sideways: Rupak De, LKP SecuritiesNifty has fallen to the upper band of the falling channel on the daily chart. The trend for the near term is likely to remain sideways to positive as long as it remains above the falling channel. A recovery towards the higher level will likely happen if the bulls manage to hold the Nifty above 17,880. On the higher end, however, 18,150 is likely to act as resistance.