Nifty fails to hold above 19,400, Sensex too ends off high; FMCG, Tech see sharp decline, banks under pressure

Nifty fails to hold above 19,400, Sensex too ends off high; FMCG, Tech see sharp decline, banks under pressure

Benchmark Indices Nifty 50 and Sensex ended Thursday’s session in the red. The NSE Nifty 50 slipped below the crucial 19,400 mark, off intra-day highs and the Sensex slipped 388.40 points to 65,151.01. FMCG, Oil & Gas and tech stocks were under pressure while select infra counters saw steady gains. The top gainers on the Nifty 50 were Adani Ports & Special Economic Zone, Titan Company, Adani Enterprises, SBI and Bajaj Auto, while the top losers were ITC, LTIMindtress, Power Grid Corporation, RIL and Larsen & Toubro.

“The mounting influence of weak global cues hindered the domestic market’s ability to recoup, resulting in sustained selling pressure. The release of Fed minutes unveiled a divided stance among its members regarding the necessity of additional rate hikes, contrasting the previously anticipated rate pause. Concurrently, the Indian rupee experienced a decline due to the dollar index surpassing 103.5; however, likely intervention from the RBI offered a degree of support. Moreover, the escalation of US bond yields is expected to limit the influx of foreign investments into the Indian market, further impacting market dynamics,” said Vinod Nair, Head of Research at Geojit Financial Services.

“The Nifty witnessed a weak day of trade today. It opened on a negative note and continued to drift lower throughout the day to close in the negative down 100 points. On the daily charts, we can observe that the Nifty has been range bound between 19, 250 – 19,500 since past three trading sessions. On the downside, the zone of 19,300 – 19,400 where support in the form of the 40-day moving average and the daily lower Bollinger band is placed is acting as crucial support while 19,450 – 19,500 where the falling resistance trend line is placed is acting as a resistance. Thus, the Nifty is consolidating between these two parameters,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Gedia added that, “The daily and the hourly momentum indicator has a negative crossover which is a sell signal. Overall, there a no signs of a trend reversal, and hence the short-term outlook is negative. On the downside we expect the Nifty to target levels of 19,100.”

Bank Nifty to see a pullback at 44400-44500

Bank Nifty has closed in the negative for the sixth consecutive trading session. It has reached the 20-week moving average (43,800). Expert believe that as a result of this the fall may not be severe from current levels, “The trend is still negative however oversold and we can observe divergence on the hourly charts which indicates that a pullback is possible over the next few trading sessions. The pullback can stretch higher till 44,400 – 44,500,” Gedia explained.