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Updated on: Wednesday, July 28, 2021, 04:12 PM IST

Markets extend losses for third straight session as mixed Asian cues weigh; pharma stocks continue slide

After a flat opening, the Index dragged for the 3rd day and made an intraday low at 15,513 levels | ANI Photo

After a flat opening, the Index dragged for the 3rd day and made an intraday low at 15,513 levels | ANI Photo

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Indices declined on the bourses at close of trading on Wednesday (July 28). The 30-share BSE index ended 135.05 points or 0.26 per cent lower at 52,443.71, while the broader NSE Nifty slipped 37.05 points or 0.24 per cent to 15,709.40.

After a flat opening, the Index dragged for the 3rd day and made an intraday low at 15,513 levels, while in the second half of the session the index had bounced back and managed to close at 15,709.40 levels with a loss of 37.05. While Bank nifty closed at 34532.90 levels with a loss of 264.55 points.

On the sectoral Front, Nifty Bank and Auto were the top losers while Nifty Metal was the top gainer. Stocks like Bharti Airtel, SBI Life, Tata Steel, Divis Lab were the top gainers while Kotak Bank, Cipla, Tata Motors and M&M were the top losers.

According to Sumeet Bagadia, Executive Director, Choice Broking, "On the technical front, the index has been trading in higher high and lower low formation and tested the support from lower formation, suggesting a bounce back in the upcoming session. On the Four-hourly Chart, the Index has formed a Bullish Marabozu Candle, which points out strength for the next day. Hourly Momentum indicator RSI has also bounced from oversold zone, which points to upside movement for the next trading day. At present, the Nifty has support at 15,500 level while resistance comes at 15,850 levels."

Gaurav Udani, Founder & CEO ThincRedBlu Securities, said, "The Nifty will face resistance at 15,720 and 15,780 levels and has support at 15,500 – 15,580 range. Any closing below 15,580 may take Nifty to 15,450 and 15,400 levels. Traders need to be watchful tomorrow as it is the monthly expiry and some sharp movements can be expected."

"The selling in the markets got arrested once the Hongkong and Chinese markets reversed their weak trend on Wednesday (July 28) morning showing signs of stability after three days of sharp weakness", according to Deepak Jasani, Head-Retail Research, HDFC Securities.. Global markets show some stability ahead of US Fed meet. Broad market however shows weakness as per the weak advance decline ratio. Nifty can now stay in the 15635-15797 band for the next 1-2 sessions, he said.

While both bulls and bears slugged it out in the first-half of the trading session, the former cut long positions and in the latter part of the trading session bears covered short-sell positions, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. "However, based on the recovery of the market, we feel that the market has completed a corrective pattern at 15,500. Significant gains in telecom, metals, technology and select private banks helped the market to close above the levels of 15,700. On Thursday, the market could remain in the trading range of 15,800 and 15,600. As the market has re-entered the trading range, the levels of 15,600 would act as a major support and 15,800 would be a major obstacle," he added.

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Published on: Wednesday, July 28, 2021, 04:05 PM IST
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