Sensex, Nifty take sharp plunge as banking, financial stocks come under selling pressure

Nifty gapped down by over 130 points today over rising COVID and inflation figures. Nifty has managed to stay above its key support of 15,600. Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "traders are advised to book profits on every rise till the time Nifty closes above 16,000 levels and exit longs if nifty closes below 15,600. Overall it's a range-bound market and 15,600 and 15,950 are key support and resistance levels. "

According to Sumeet Bagadia, Executive Director, Choice Broking, "On the technical Front, the Index has formed Doji candlestick pattern as well as confirmed Hanging Man Candlestick pattern which suggest negative movement for tomorrow. Moreover, the Index has given closing below 21DMA, which further adds weakness in the counter. Hourly Momentum Indicator MACD is also showing negative crossover which suggests weakness for the next day. At present, the nifty is having support at 15,600 level while resistance comes at 15,900 levels," he said.

Banks and metals were hit the most. India VIX surged by 8.28 percent at 12.68. Mohit Nigam, Head, PMS - Hem Securities said, "Contrary to how broad markets behaved, shares of GR Infra and Clean Science had a stellar debut performance, listing with 103 percent and 98 percent respectively. Key support levels for Nifty50 shall play out to be 15,600 while 15,900 shall act as a strong resistance level."

According to Deepak Jasani, Head-Retail Research, HDFC Securities, the Nifty has fallen sharply with a downgap and the next support is 0.8 percent away. Retail investors may review their portfolios and start raising some cash / book profits partly. In case the Nifty settles and starts to rise again they could find another set of stocks to ride on, he said.

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Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities, said, "On Tuesday, the market must hold above the levels of 15,600. On the dismissal of the same, the Nifty would fall to 15,500 and 15,450 levels. We need Nifty/Sensex to cross the levels of 15,840 / 52,850 levels for the bullishness in the market."