The markets closed lower after a four-day winning streak. The benchmark index extended the losses after a gap-down opening on Thursday due to weak global cues, after FOMC meeting minutes. However, a slight pullback was witnessed in the second half of the session ahead of Weekly expiry. The Nifty50 index declined almost 1 percent, while Banknifty settled at 37,490.30 levels with 0.5 percent downfall. The BSE Mid cap index and small cap index were also trading with losses, while India VIX climbed 2 percent higher.
Sectoral indices like Nifty IT, Realty, FMCG, and Infra dragged lower while PSU Bank, Media were into positive territory.
At close, the Sensex was down 621.31 points or 1.03 percent at 59,601.84. The Nifty was down 179.40 points or 1 percent at 17,745.90. About 1,798 shares have advanced, 1336 shares declined, and 74 shares are unchanged. BSE Metal index fell 0.5 percent.
Among the major losers on the Nifty were JSW Steel, Ultratech, Tech Mahindra. UPL, IndusInd Bank, Bjaja Auto and Maruti were among the major gainers.
Sachin Gupta, AVP-Research, Choice Broking said, "On a technical chart, the Nifty index has taken immediate resistance at upper Bollinger Band formation and traded below it. However, on a four hourly chart, the stock has still been trading above the Horizontal Line, which is acting as an immediate support zone. An indicator MACD & RSI is still trading with a positive crossover that supports the bullish trend. At present, the Index has support at 17600 levels while resistance at 18,000 levels. On the other hand, Bank nifty has support at 36,700 levels while resistance at 38,000 levels."
Mohit Nigam, Head - PMS, Hem Securities said, "Concerns about the increasing cases of the Omicron variant of COVID-19 persisted among investors globally. Besides, as COVID-19 infections spike in the country resulting in restrictions in various states and impacting the fragile recovery, many economists are expecting RBI to delay the policy normalization move, which is expected in the February review. On technical front, Nifty's immediate support and resistance can be 17,500 and 18,000 respectively. While for Bank Nifty 36,600 and 38,000 may act as immediate support and resistance."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Technically, after an intraday sharp fall the market took the support near 17,650/59,300 and reversed but failed to surpassed 17,800/59,800 resistance level which is broadly negative. In addition, on daily charts, the index has formed Hammer kind of candlestick formation that also support short term weakness. The texture of the market is volatile and remain volatile in the near future. Hence, level based trading would be the ideal strategy for the day traders. Now, 17,700/59,000 would act as an immediate support level for the bulls. Above the same uptrend move will continue up to 17,800-17,875/59,800-60,000. On the flip side, trading below 17,700/59,000 could drag the index up to 17,650-17,610/58,800-58,600."
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said, "The negative catalyst were the minutes of the Fed’s December meeting indicated that the US central bank may need to raise interest rates sooner than expected. The Street was a bit surprised as most of the Fed members agreed with the notion that quantitative tightening (where the Fed reduces its balance sheet) should start sooner and proceed faster than in past cycles. The preferred theme for Friday’s trade could be ‘desired consolidation’. The biggest make-or-break Nifty and Bank Nifty's support are at 17,601 and 37,001-mark respectively."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "Nifty fell as expected after a strong four day upmove. However the advance decline ratio is still at 1:1 suggesting broad market strength amidst selling in index heavyweights. Local traders are accumulating mid and smallcap stocks ahead of the Union budget and Corporate results for Q3 FY22. 17,828 will now be a resistance for the Nifty in the near term while 17,640 will be a support."
