BSE Sensex and Nifty 50 ended at nine-day lows on Friday as bears took over the Dalal Street. Headline indices completed within the crimson for the fourth consecutive day. BSE Sensex plunged 435 factors or 0.85 per cent to 50,890. While Nifty 50 ended down at 14,982 stage. In the intraday commerce, the 30-share index tanked 800 factors from the day’s excessive to hit a low of fifty,624. While NSE’s Nifty touched a day’s low of 14,898.20 stage. Both the headline indices ended this week 1.2 per cent decrease. The broader markets, too, ended within the crimson. The S&P BSE MidCap index underperformed BSE Sensex and completed 1.7 per cent or 340 factors down at 20,035. The SamllCap index settled at 0.7 per cent or 153 factors down at 19,863.
Where are Indian share markets headed?
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
After a stellar rally from 13600 to15430/46200-52516 at the moment the market witnessed promoting strain. From the final 4 days, the index corrected over 450/ 1000 factors. Technically, on weekly charts the index has shaped a bar reversal candle which clearly suggests quick time period weak spot will proceed within the close to future. However, the medium time period texture of the market remains to be bullish and prone to proceed if the nifty succeeds to commerce above 14900-1500/51500-51850 which is earlier resistance stage (Prior to the Budget of announcement). In addition, regardless of quick time period weak spot the market remains to be buying and selling nicely above quick time period and medium time period averages which additionally assist medium time period uptrend.
We are of the view that we expect the market to search out assist between 15000 -14900/51500-51850 however in case there’s moreover weak spot in world markets, then we could even see the extent of 14750/50250 which was earlier the resistance stage. As the market already shaded over 450/1000 factors preliminary technique needs to be to look for including lengthy positions and on bounce again we are able to scale back close to 15250-15300/51500-51900.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founding father of Gemstone Equity Research & Advisory Services
From the excessive of 15431, the NIFTY has come off practically 500-odd factors. From the FO information, till expiry on 25FEB, we really feel that some technical pullback is probably going because the NIFTY has received deeply oversold within the instant quick time period. It is unlikely that the NIFTY dips a lot beneath 15000 because the Index enjoys an excellent quick time period assist at 14950-14900 ranges. From the present ranges, we anticipate some technical pullback to occur till 15200-odd ranges. Fresh directional cues will seem solely after that.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
The Nifty-50 & BSE Sensex declined by 1.2% this week as market temper turned cautious on rising world and native bond yields. The broader markets that’s NSE Mid Cap 100 Index and BSE Small Cap Index are each within the inexperienced this week. The US 10 Year Bond yields have risen from beneath 1% to 1.29% constructing in financial impression of the US$ 1.9 trillion stimulus package deal. In India too the ten yr bond yields have moved up from latest low of 5.76% to six.13% which may primarily be linked to the upper fiscal deficit estimates. We anticipate home 10-year bond yields to be within the vary of 6-6.75% on this calendar yr. Oil & Gas & energy shares have been main gainers this week. Almost 37 shares from Nifty-50 misplaced floor this week with Pharma and choose shoppers having misplaced probably the most. This week PSU banks have been in demand on stories of presidency prone to convey amendments to 2 legislations later this yr to facilitate privatisation of public sector banks. We have to see if Nifty-50 holds the 15,000 stage within the close to time period. The subsequent main assist for the Nifty-50 is the 50 DMA positioned at 14,321 as of now.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Profit reserving prolonged for a fourth session at the moment, as Indian markets briefly dipped to their lowest stage in 2 weeks. The promoting at the moment was throughout the board, with broader markets additionally retreating sharply earlier than a minor restoration within the final hour of the session. For the week, Nifty shaped a Bearish Engulfing candlestick sample. The early week reversal from simply beneath the 161.8% fibonacci retracement stage of 15470 signifies that this is a vital resistance to keep watch over within the short-term. Meanwhile, the instant assist to deal with is at the moment’s low of 14900. If Nifty sustains beneath 14900 within the coming week, the correction is prone to prolong in direction of 14730-14600. However, if the index manages to carry above 14900 and goes on to surpass 15470, a recent up leg might be anticipated to unfold that would take the index in direction of 15910.