The benchmark index corrected almost 1 percent on a weekly expiry day. The Nifty50 opened on a negative note and continued the downside for the day to close at 15,727.90 levels while the Bank Nifty ended at 35,274.10 levels with a loss of 497 points. All the sectoral indices dragged lower led by the Nifty Metal and Pharma index. Despite that, the falling market, a few stocks like Tech Mahindra, Eicher Motors, Shree Cement closed on a green note with marginal gains, whereas Tata Motors, JSW Steel, Hindalco, and Bajaj Auto were the top laggards.
The market plunged over 150/450 points as weekly expiry fuelled consistent selling pressure at higher levels. In the second half of the day the Nifty/ Sensex broke the important support level of 15,780/ 52,750 and post breakdown selling pressure intensified, which is broadly negative for key benchmark indices.
Among sectors, profit booking was seen in metal and PSU banks stocks, falling over 1.5 percent each.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, on intraday charts the index has formed lower top formation which indicates further weakness from the current level. For the next few trading sessions, 15,780/ 52,750 could act as important resistance levels for the traders and below the same, correction wave could continue up to 15,635-15,600/52,200-52,000 levels. On the other hand, the immediate hurdle would be 15,780/ 52750, and trading above the same we can expect continuation of uptrend up to 15,830-15,860/ 53,000-53,150 levels.
According to Sumeet Bagadia, Executive Director, Choice Broking, "Technically, on the daily chart, the Nifty index has wiped out all the gains and breached the prior three-day lows, which indicates further selling pressure. Moreover, the index has also slipped below the Middle Bollinger Band & 21 days SMA, which suggests a downside move for the near-term. A momentum indicator RSI and Stochastic points out negative crossover on the daily chart. At present, the Nifty seems to have resistance at 15915 levels. Crossing above the same can show 16,000-16,100 levels while immediate support comes at 15,600 levels," he said.
Mohit Nigam, Head, PMS - Hem Securities said, Key support levels for Nifty 50 shall play out to be 15,600 while 15,900 shall act as a strong resistance level.