After a gap-up opening, the index made an intraday high at 17,373.50 level but later in the second half of the session profit booking has been seen from a higher level as index wiped out early gains. Bank Nifty closed the session at 37,689.40 level with a loss of 292.70 points
At closing bell, the benchmark Sensex was down 76.71 points or 0.13 percent at 57,200.23. The broader Nifty shed 5.50 points or 0.03 percent at 17,104.70.
Among the sectors, the Nifty Auto and Banking indices were under pressure while the Nifty IT & Pharma were among the top gainers. Among major losers were Asian Paints (-) 2.94 percent, Tech Mahindra (-)2.43 percent, PowerGrid (-)2.03 percent, ICICI Bank (-)1.62 percent, Axis Bank (-)1.14 percent and Bajaj Finserv (-)1.10 percent. NTPC, Sun Pharma, IndusInd Bank, M&M, ITC, and Wipro were among major gainers at the closing bell.
Palak Kothari, Research Associate, Choice Broking, said, "On the technical front, the index has confirmed the bearish engulfing candlestick pattern on the weekly chart but it has taken support from 78.6 percent RL of its previous up rally which suggests sustained above the same can show bounce back movement in the counter. On a four Hourly chart, the index has taken resistance from 89-FourHourly Moving Average as well as the index has formed a bearish candlestick pattern which points out the weakness in the counter. Moreover, the momentum indicator Stochastic & MACD is also trading with negative crossover on a daily time-frame which adds bearishness in prices. At present, the Index has support at 16830 levels while resistance comes at 17,450 levels, crossing either side can suggest further direction. On the other hand, Bank nifty has support at 37,000-levels while resistance at 38,500-levels."
Deepak Jasani, Head of Retail Research, HDFC Securities, "Nifty closed the week, lower by 2.92 percent recording the second worst week in 2022. Nifty pulled back after facing resistance at close to 17,400. FPI selling seems relentless even after the F&O expiry on the previous day. This seems to be more global decision than pertaining to just India. 16,998- 17,374 could be the band in the near term while this band could widen on and post the Budget day next week."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "As such, bond markets witnessed a sharp increase in yields. History suggests that in 7 out of the last 10 years, Indian indices have delivered negative returns or remained range-bound in the week preceding the budget. And 2022 was no different. FPIs sold equities worth $2.8 billion over the past five trading sessions, while DIIs bought $730 million over the same period. Domestically, aggregate Q3FY22 earnings prints of Nifty-50 companies were ahead of expectations.
The Nifty was at 17,144 with loss of 2.7 percent and Sensex was at 57,323 with loss of 2.9 percent during the end of the week on January 28, 2022. The Nifty small cap index and mid cap index echoed Nifty and Sensex during with the week with loss of 2.1 percent and 3.2 percent respectively. All the sectoral indices ended in red during the week except for Bank Nifty and BSE Auto. BSE IT and BSE Consumer durable were the top two losers with loss of 5.4 percent and 6 percent respectively. Most of the remaining sectoral indices including FMCG, Metals, Capital Goods, Pharma, Reality and Oil & Gas. Indian VIX was up 9.8 percent in the past one week.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, said, "It was the weak European markets opening that dampened the sentiment and triggered a late bout of selective profit-taking. The persisting selling by the FIIs has been a worrying factor, which has led to a steep fall in recent weeks. Any escalation in the geo-political tensions and rising oil prices can further worsen the sentiment. After a long time, the Nifty closed below the 50 day SMA and has also formed a bearish candle on weekly charts, which is negative for the markets. For the bulls, 17,300 would be the important breakout level to watch and if the Nift manages to close above the same, we could expect continuation of an uptrend wave up to 17,450-17,550 levels. On the flip side, trading below 17,000 may trigger further weakness up to 16,800-16,700. Also, the Bank Nifty is trading near the 20 day SMA and any movement above the same could see the index rally up to 38,500-39,000."
