Markets tomorrow- Nifty, Sensex end deep in red; keep a check on leveraged positions, hedge your bets

Markets tomorrow: Nifty, Sensex end deep in red; keep a check on leveraged positions, hedge your bets

Indian benchmark indices closed the session in deep red, extending losses for the fourth straight day. BSE Sensex fell over 980 points to end at 59,845.29, while NSE Nifty 50 plunged 300 pts to end just above 17800. Adani Ports, Adani Enterprises, Hindalco Industries, Tata Steel and Tata Motors were among the biggest Nifty losers. The BSE midcap index lost 3.3% and smallcap index slipped nearly 4%. Volatility gauge, India VIX, meanwhile, climbed 6.40% intraday. PSU Bank stocks crashed to close 6.06% lower, while Nifty Media and Nifty Metal settled down by over 4% each.Markets decoded: PSU banks, metal and energy stocks end lower amid Covid fears

“Markets plunged sharply lower and lost over two percent, in continuation to the prevailing corrective trend. After the gap-down start, Nifty gradually inched lower as the session progressed and finally settled closer to the day’s low to close at 17,806.8 levels. The pressure was widespread wherein PSU banks, metal and energy stocks were hammered badly. The broader indices underperformed the benchmark and lost in the range of 3.5%-5%. Indications are pointing towards the prevailing corrective move to extend further, with a marginal rebound in between. Meanwhile, mixed global cues will keep the volatility high thus we recommend keeping a check on leveraged positions and preferring a hedged approach.” – Ajit Mishra, VP – Technical Research, Religare Broking

Nifty Technical View: Nifty support seen at the 17500 level

“Technically, after a long time the index closed below the 50 day SMA (Simple Moving Average) and also formed a long bearish candle on weekly charts which is broadly negative. For traders, as long as the index is trading below 18000, the correction wave is likely to continue and below the same, the index could slip till 17600-17500. On the flip side, 18000 could act as a sacrosanct resistance zone. The dismissal of 18000 could push the index till the 50 day SMA or 18150-18200.” – Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities

“The Put Call Ratio of nifty remains at 0.74 levels. Volume profile indicates Index may find further support around the 17500-17550 zone. Coming to the OI Data, on the call side, the highest OI observed at 18000 followed by 18100 strike price while on the put side, the highest OI was at 17500 strike price.”- Ameya Ranadive, Equity Research Analyst, Choice Broking