IGI Logo

Market Closing Commentary
 

Benchmark indices closed in negative territory as elevated Brent crude oil prices, trading near a six-month high, and weak global cues continued to weigh on investor sentiment. Selling pressure remained broad-based, with the broader market witnessing a sharper decline than the frontline indices.

The Nifty 50 declined 0.39% to close at 22,600, while the Sensex fell 0.17% to 73,123.

On the sectoral front, all sectoral indices ended in negative territory. Metal, Realty and PSU Banks were the major laggards, while Consumption and IT were relatively resilient, registering comparatively smaller losses.

The broader market underperformed significantly, with the Nifty Midcap 100 declining 2.21% and the Nifty Small cap 100 falling 2.94%, reflecting intense selling pressure in mid- and small-cap stocks.

Nifty Outlook

Index formed a bearish candle with a long lower shadow highlighting continuation of the corrective decline for the fourth session in a row. It maintained a lower high and a lower low signaling continuation of the downward bias. Nifty started the session on a positive note. However, sharp selling pressure post opening saw the index dragged lower below its previous session low and formed an intraday low of 22,372. Buying demand at lower levels saw the index closed off the low at 22,600 levels.      

Nifty during last 4 sessions retraced 80% of its previous six sessions up move from 22180 to 23,175. Going ahead, follow through weakness below last week low 22,372 will open downside towards the current month low of 22,180.

Index holding above last week low of 22,372 will lead to consolidation in the range of 22,370-22,850 in the coming week. On the higher side immediate resistance is placed at 22,850 levels being the presence of 20 days EMA, while previous week high of 23,175 is likely to act as major hurdle in the coming week.

Bank Nifty  Outlook

Bank Nifty formed a sizable bearish candle highlighting continuation of the corrective decline for the fourth session in a row. Index maintained a lower high and a lower low indicating continuation of the corrective decline as index closed around the 54,300 levels.

Going ahead, a follow through weakness below 54,000 will open further downside towards 53,500 and 53,100 levels in the coming sessions.  

Index has key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move.

On the higher side only a move above 55,150 will signal pullback towards 56,000 levels in the coming sessions.

Above views are of the author and not of the website kindly read disclaimer