The equity market ended nearly 0.5 percent lower amid volatility of weekly F&O expiry. The market remained weak throughout the session as the US Federal Reserve surprised investors by signalling it might raise interest rates at a much faster pace than assumed, sending bond yields and the dollar sharply higher. The US Fed expects two possible rate hikes by the end of 2023.
HDFC twins, ICICI Bank and Adani Ports were among the top contributors to benchmark losses which were partially offset by leading IT stocks like TCS and Infosys. All the sectoral indices closed on a negative note except Nifty FMCG and IT; Metal index continued to remain the top underperformer.
According to Sumeet Bagadia, Executive Director, Choice Broking said, going ahead investors’ focus will shift towards global economic data and COVID-related updates. Technically, the index has confirmed the Evening Star candlestick pattern at the top of the trend which suggests correction in the counter. Moreover, the index has given closing below 21 SMA & Middle Bollinger Band formations, which indicates further bearishness for the near term. In addition, a momentum indicator RSI (14) & Stochastic witnessed a negative crossover on the daily time frame. At present, Nifty has an immediate support at 15,550 levels, whereas 15,900 may act as a crucial resistance zone, he said.
Mohit Nigam, Head-PMS, Hem Securities said, "both the Nifty and Bank Nifty are moving on a narrow range while stock specific action continues. Metal stocks are under pressure from Wednesday's session after the news that China will soon release some base metals from state stockpiles. Profit booking seen in gold Finance stocks as gold price fell to over 1-month low".
Ultra Tech Cement, Asian Paints and TCS were among the top gainers in Nifty 50 while Adani Ports, Tata Steel and IndusInd Bank were among the top losers in Nifty 50 today. Immediate support and resistance are intact at 15,600 and 15,850 for Nifty 50.
Technology stocks and Reliance gave strong support to the index, which allowed the Nifty to close at 15,700. Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd said, "Nifty/Sensex could reach fresh levels on Friday if the indices don't close below the levels of 15,550/51,700. On an immediate basis, 15,770/52,500 and 15,850/52,700 levels would be major hurdles. Below the levels of 15,550/51,700, the Nifty/Sensex would gradually fall to 15,400/51,300 or in the worst-case scenario 15,300/51,000," he said.