The benchmark stock market indices closed in red on April 22, last day of trading this week. Sensex and Nifty, slumped by more than 1.2 percent on Friday dragged by heavy selling pressure in banking & financial, IT and FMCG stocks.
On the sectoral front, Nifty Auto gained the most with 2.86 percent followed by Nifty ENERGY 2.83 percent and Nifty CPSE 2.35 percent while Nifty IT lost more than 5 percent during the week.
At close, the Sensex was down 714.53 points or 1.23 percent at 57,197.15, and the Nifty was down 220.60 points or 1.27 percent at 17,172. About 1,447 shares have advanced, 1,882 shares declined, and 115 shares are unchanged.
The index witnessed heavy selling pressure in the last hour of trading due to weakness in the global markets.
The Nifty idex came under selling pressure after two days of the rally. The Nifty 50 had gained 256.05 points or 1.49 percent on Thursday.
The Sensex closed in the red for the first time in three days. The index had rallied 874.18 points or 1.53 percent on Thursday. Only six of the 30 scrips that are part of the Sensex closed in the positive. Mahindra and Mahindra rose 0.98 per cent to Rs 920.30. Bharti Airtel gained 0.50 percent to Rs 738.45. Maruti Suzuki, Asian Paints, ITC and HCL Technologies were the other Sensex gainers.
Hindalco Industries, SBI, Cipla, IndusInd Bank and HUL were among the top Nifty laggards. Adani Ports, M&M, Bharti Airtel, ITC and Maruti Suzuki were the top gainers.
Mohit Nigam, Head - PMS, Hem Securities, said Benchmark indices ended the day’s session on a negative note, with Sensex and Nifty 50 ended a session with losses, dragged by losses across the board, as global sentiment soured after the US Federal Reserve hinted at an increasingly aggressive rate hike amid concerns about high inflation. Nifty50 closed its day above below resistance zone of 17,200 and if index holds below 17,200 mark for coming trading sessions then we may see more downward move towards 16,800-16,500 mark which are another support zone on the downside.
Rallis India tanks 9 percent as company posted Rs 14 crore loss in Q4. Also, Bitcoin, Solana, Ethereum, Avalanche shed up to 4 percent. In the 50-share pack, Adani Ports was the biggest gainer, up 2.78 percent per cent. Hindalco was the top loser in the pack, down by 4.83 per cent. HUL, Cipla and SBI were other top loosers in the Nifty 50 pack. Crucial support for Nifty 50 is 17,000 while Nifty may face some resistance at 17,500, Nigam added.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd said, Despite tepid market conditions, auto and energy stocks witnessed buying interest. As a result, the auto-index gained over three per cent while the energy index gained over 2.75 per cent. Technically on weekly charts, Nifty has formed a long leg Doji candle which indicates indecisiveness between the bulls and bears. in addition, during the week, after a long time, the Nifty broke the level of 200 days SMA. It also broke the sacrosanct support level of 17000. However, post breakdown it bounces back sharply from the level of 16825, which is the weekly lowest level.
After a volatile momentum currently, Nifty is trading near 200 and 50 day SMA. We are of the view that, the short-term texture of the market is non-directional. For the bulls now, the fresh pullback rally is possible only after 17,280 breakouts. Above which the index could move up to 17,400-17,550. On the flip side, as long as, the Nifty is trading below 200 days SMA or 17,200, the correction wave is likely to continue. Below the same, Nifty could retest the level of 17,000-16,800, Athawale added.
Dalal Street witnesses roller coaster ride throughout week
Dalal Street witnessed a roller coaster ride throughout the week, said Sumeet Bagadia, Executive Director, Choice Broking. On Monday Nifty opened with the loss of 292 points and closed in red , downside rally continued on Tuesday as well losing 1.73 percent. In between bulls have somewhat managed to take control on bears. But lastly on Friday once again severe sell off was observed in indices as well as sectorally leading to close with the loss of Sensex 1.96 percent, settled at 57197.15 and nifty 1.74 percent, settled at 17,171.95 respectively. The volatility Index hiked with 0.38 percent on a weekly basis. During the week the US market also came in panic mode after the Fed signaled that a rate hike might be coming next month.
On the Stock front in Nifty stock, the Reliance saw more than 8.41 gains, while on the loser’s side Infosys crumbled more than 9 percent.
Technically, after forming the evening star on the weekly chart, index has formed a Doji candlestick which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. On the daily chart, It has failed to close above 17,200 level, indicating traders will opt to sell on rise. Immediate support of 17,000 has already been violated already, so next strong support would be on 16,800 followed by 16,600. Short-term investors may opt for stock specific action with positive bias. Indicators as MACD and RSI show negative crossover further indicating weakness in price action. Overall, the Nifty index is having support at 16,800 mark while resistance at 17,550 followed by 17,650, while Banknifty support is placed at 35,500 followed by 35,200 and resistance at 37,200.
Markets were weak during the week as it focused on (1) ongoing 4QFY22 earnings prints and (2) rising global and domestic bond yields, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Markets continued to price in the increasing probability of aggressive rate hikes by the US Fed. The Sensex was at 57495 on April 22, ending 1.45 down during the week, while the Nifty was at 17,271 on April 22, reporting loss of 1.17 percent during the week.
Midcap and Smallcap Index outperformed during the week losing 0.61 percent and 0.42 percent respectively. Most of the sectoral Indices ended in red during the week. BSE IT was the top loser losing around 5.3 percent followed by bank Nifty which lost around 3.05 percent. While BSE reality and BSE Metal were other two top sectoral loser. Most of the other sectoral Index lost between 0 to 1 percent. BSE Auto was the top gainer with gain of around 3.55 percent, while BSE Oil and Gas gained around 1.96 percent.
On the economy front, IMF has downgraded the global growth outlook and projected CY22 global GDP growth at 3.6 percent versus 4.4 percent previously. The International Monetary Fund (IMF) has also cut India’s GDP forecast to 8.2 percent, from the earlier projected figure of 9 percent for CY22. This, however, is far better than its estimates for other major economies like the US, China, and Japan.
French voters are heading to the polls on Sunday. The second and final round of the election puts incumbent Emmanuel Macron up against anti-immigrant party leader Marine Le Pen. In China, foreign businesses are struggling to bring workers back to factories after weeks of lockdowns in Shanghai, as the country battles its worst COVID outbreak since the pandemic began.
FIIs on selling spree
Foreign institutional investors continued their selling spree, offloading shares worth Rs 713.69 crore on Thursday, according to stock exchange data.
Global shares decline
Global shares retreated Friday, tracking losses on Wall Street after Federal Reserve Chair Jerome Powell indicated increases in interest rates must be faster to fight inflation.
France's CAC 40 slipped 1.2 percent in early trading to 6,632.23, while Germany's DAX fell 1.2 percent to 14,334.63. Britain's FTSE 100 shed 0.5 percent to 7,590.47. The futures for the Dow industrials and S&P 500 slipped 0.2 percent.
In Asia, markets in Tokyo, Hong Kong and Seoul settled lower, while Shanghai ended marginally higher.
In Asian trading, Japan's benchmark Nikkei 225 dipped 1.6 percent to finish at 27,105.26. Australia's S&P/ASX 200 dropped 1.6 percent to 7,473.30. South Korea's Kospi shed 0.9 percent to 2,704.71. Hong Kong's Hang Seng slipped 0.2 percent to 20,638.52, while the Shanghai Composite recouped earlier losses to edge up 0.2 percent to 3,086.92.
Crude oil prices down
International oil benchmark Brent crude declined 1.60 per cent to $106.6 per barrel.
(With inputs from Reuters)