The 30-share BSE index fell 66.23 points or 0.13 per cent to close at 52,586.84, while the broader NSE Nifty dipped 15.40 points or 0.10 per cent to 15,763.05.
The Indian benchmark saw a sudden sell-off and erased the day’s gain during the latter part of the day. Nasdaq 100 contracts slid more than 1 percent as Amazon.com Inc. tumbled in extended trading after its sales outlook missed expectations. Ashok Leyland and TVS Motor led auto stocks higher while Tech Mahindra lifted IT scrips on strong earnings.
The week has been volatile for the traders, as benchmark indices corrected sharply after a muted opening. However, once again the Nifty/ Sensex witnessed support near 15,500/ 51,900 levels and reversed quickly. Among sectors, the metal index outperformed during the week and rallied over 9 percent, whereas profit booking was seen in private banks and Energy stocks.
According to Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, Technically, on daily and intraday charts, the market has formed lower top formation which is broadly negative, but at the same time the Nifty is hovering near 20 and 50 day SMA with modest volume activity.
"We are of the view that the broader texture of the market is still in the bullish zone, but due to non-directional activity indices may consolidate in the range of 15600-15900/52000-53000 levels. In the near future, the 15,720/ 52,500 level could act as a strong support level for traders and below the same correction wave is likely to continue up to 15,600/52,000. On the flip side, the 15900/53000 level should be the sacrosanct level for the bulls, above the same uptrend formation could continue up to 15960-16,050 /53,300-53,550 levels.
"On the sectoral front, the texture suggests metal stocks would continue to outperform in the near term. Any short-term corrections would be used to add quality metal stocks with the medium term time horizon," he said.
"Nifty made a bearish bar today. It gave up all its gains and ended in the negative zone. It made an inverted hammer pattern as per Japanese candlesticks with is a bearish formation. Any fall below 15,700 can now take Nifty to 15,600 and 15,450 levels. Traders in long positions need to keep strict stop loss to protect capital and profits. Fresh longs in Nifty should be considered only on closing above 16,000 levels with higher than average volumes," Gaurav Udani, CEO & Founder, ThincRedBlu securities.
Asian and European stocks fell on Friday as concerns about the fast-spreading Delta variant and regulatory actions in China offset optimism around quarterly earnings season and an economic recovery. Gross domestic product in the euro zone region grew 2.0 percent quarter-on-quarter for a 13.7 percent year-on-year increase. Economists polled by Reuters had expected a 1.5 percent quarterly and a 13.2 percent annual increase.
Deepak Jasani, Head-Retail Research, HDFC Securities, said, "Nifty has repeatedly run into resistance in the 15,862-15,899 band over the past six sessions. It closed lower for the second consecutive week, though by a small percent. However the lower shadows (area between the lows and close) are growing over the past three weeks, suggesting sharp recovery post higher selling pressure. How long such recoveries will continue is a moot point. Nifty could remain in the 15,578-15,899 band in the coming week."
Mohit Nigam, Head, PMS - Hem Securities, said, "We can see some traction in the sugar industry in the coming days as Indian traders for the first time have signed a sugar export contract five month prior to shipment as there is likely to be a drop in brazil production due to frost. Sun Pharmaceutical Industries today reported a consolidated net profit of Rs 1,444 crore for the quarter ended June as against a consolidated net loss of Rs 1,655 crore in the year ago quarter. Immediate support and resistance for Nifty 50 are 15,600 and 15,900 respectively."
On the technical front, the index has formed a bearish Marabozu candle on an hourly time frame which points out weakness for the next trading day. Furthermore, the index has given closing below 50-HMA, which points out weakness for the upcoming session. The MACD indicator is also showing negative crossover on a daily chart which points out a correction in the counter. At present, the Nifty has support at 15500 level while resistance comes at 15,900 levels, said Sumeet Bagadia, Executive Director, Choice Broking.
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