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Sensex tanks 721 pts, Nifty falls 208 pts from record highs, snap 3-day winning run; what’s in store next week

Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit booking and mixed global sentiments. Image: Reuters

BSE Sensex and Nifty 50 tumbled from record-high levels on Friday, putting a three-day winning run to a halt. BSE Sensex tanked 721 points from record high to settle at 59,016, while Nifty 50 plunged 208 points from a lifetime high to finish trade at 17,585. During intraday Sensex surged to a historic high of 59737.32 and Nifty 50 rallied to 17,792.95 levels. Index heavyweights such as Reliance Industries Ltd (RIL), Tata Consultancy Services (TCS), ICICI Bank, Hindustan Unilever Ltd (HUL), and Infosys contributed the most to the indices’ loss today. the broader market underperformed the equity benchmarks. BSE MidCap index tumbled 1.14 per cent or 290 points to 25,046, and BSE SmallCap index fell 1.06 per cent or 300 points to 28,007. During the day, both the indices made fresh record high levels. India VIX, the volatility index, jumped 5.7 per cent to 15.23 levels.

Rohit Singre, Senior Technical Analyst, LKP Securities

Index closed a week at 17586 with gains of more than one percent and formed a bullish candle on the weekly chart. On Friday session index has witnessed good profit booking resulting formed dark cloud cover sort of candle pattern on daily chart which is considered to be a bearish reversal pattern by nature so any break below 17530 zone we may see more drag down the index, immediate support is still placed at 17500 followed by 17430 zone & resistance is coming near 17650-17750 zone also profit booking is suggested around mention hurdle zones.

Vinod Nair, Head of Research, Geojit Financial Services

Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit booking and mixed global sentiments. PSU Banks were heavily wounded by profit booking although the government approved a guarantee of Rs.30,600 crores to the National Asset Reconstruction Company Ltd with an aim to clean stressed assets from the banking sector. Global markets traded cautiously bracing for the Fed Reserve and Bank of England policy meetings next week.

S Ranganathan, Head of Research, LKP Securities

While the pace of vaccinations and encouraging export data helped bulls get closer to the 60K mark amidst the FTSE & MSCI rebalancing of flows, profit taking took away all the gains ahead of the GST Council Meet. Even as the BFSI biggies held fort today, the cut in the small and midcap indices weakened market breadth as was evident in the advance-decline ratio at close today.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed a small correction and an attempt to hold the level above the Nifty 50 index level of 17600. The market suggests that 17450-17500 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 17450-17500, market can witness higher levels of 17850. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.

Sachin Gupta, AVP, Research, Choice Broking

Technically, the nifty index has formed a bearish candle at the top of the trend and is reserved from the resistance of Upper Bollinger band formation, which indicates some profit booking for the upcoming session. However, the bullish trend is still intact as the nifty50 index is holding gains above 17250 levels. Although we can expect some fight between bulls & bears along with the volatility, every dip would be a buying opportunity. At present, the nifty may find the resistance around 17800 levels while on the downside, 17400 may act as support for the index.

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