Sensex ends in red after selling pressure in closing hour of trade, Nifty support still at 16000

Sensex ends in red after selling pressure in closing hour of trade, Nifty support still at 16000

Domestic markets failed to hold on to intraday gains and closed the day in red with losses owing to fag-end selling. S&P BSE Sensex gave up all intraday gains to finish 37.78 points or 0.07% lower at 54,288 while the NSE Nifty 50 index fell 51.45 points or 0.32% to settle at 16,214. Maruti Suzuki India was the top gainer on Sensex, up 4%, followed by M&M, HUL, and Larsen & Toubro. Tata Steel tanked 12.24% on Monday, while Ultratech Cement was down 3%, and ITC fell 2.2%. Bank Nifty ended 0.08% in the red. India VIX gained 1.3% to finish above 23 levels.

Deepak Jasani, Head of Retail Research, HDFC Securities –

Mohit Nigam, Head – PMS, Hem Securities –

“On the global front, Asian markets were trading mixed while European markets were trading higher as traders attempted to call an end to a downturn in global stocks driven by surging inflation and fears of major economies falling into recession. On the technical front, the key resistance levels for Nifty50 are 16500 and on the downside 16000 can act as strong support. Key resistance and support levels for Bank Nifty are 34800 and 33500 respectively.”

Om Mehra, Research Associate, Choice Broking –

“Technically, Nifty has formed a bearish candlestick on the daily timeframe. Bulls remain in trap as from the past week no continuous day index is closed in green. From the hourly chart, Nifty has formed a triple top pattern suggesting weakness amid coming days, however, view negated closing and sustaining above 16400 levels. Indicators such as RSI still remained in the oversold zone while MACD also suggests weakness ahead. The Nifty may find support around 16000 levels followed by 15850 while on the upside 16500 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33500, while resistance is placed at 35200 levels.”

Vinod Nair, Head of Research at Geojit Financial Services –

“The government and RBI are making persistent efforts to moderate future inflation. Government fiscal measures like a hike in customs duty on steel and similar steps on other products in the future will help to control inflation. However, the hawkish monetary and fiscal measures adopted by RBI & Government will have a cascading effect on market & economy in the short to medium-term.”

S Ranganathan, Head of Research at LKP securities –

“Markets gave up all its gains in Afternoon Trade today as it simply could not recover after the Export Tax imposed on Steel products with the Metal Index falling almost 9% to 5200 levels in Morning Trade. The prolonged Russia-Ukraine conflict coupled with its consequences and inflationary pressures weighed heavily in the minds of investors and traders. Prospects of additional market borrowings by the GOI in the wake of the tax cuts on fuel to tame inflation also came to the forefront.”