Sensex ends 1% down, Bank Nifty gains 1000 pts from day’s low on F&O expiry; Nifty support at 16800

BSE Sensex and Nifty 50 recovered partially from day’s lows on Thursday, helped by buying in banking and select auto stocks. Although headlines indices failed to turn positive on the back of weak global cues on the day of monthly F&O expiry. BSE Sensex ended 582 points or 1 per cent down at 57277, while NSE Nifty 50 index ended at 17110, up 168 points or 1 per cent. Index heavyweights such as Infosys, Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), ICICI Bank, and HCL Technologies among others contributed the most to the indices’ fall. Bank Nifty ended at 37,982, up 0.7 per cent. In the broader market, S&P BSE Midcap index underperformed the BSE Sensex, falling 1,25 per cent or 303 points to 23,942. While S&P BSE Smallcap index lost 0.82 per cent or 236 points to end at 28,634.

Rupak De, Senior Technical Analyst, LKP Securities

Volatility has been predominant during the day as the benchmark Nifty traded in the range of 300 points. On the lower end Nifty held the recent low of 16836 which it made in early trades of Tuesday. So Nifty has respected the support of 16825. Going forward the market may remain volatile. On the lower end support is visible at 16825-16800. A decisive fall below 16800 may trigger resumption of the corrective phase. However, if Nifty may remain in the recovery mode as long as 16800 is held.

S Ranganathan, Head of Research, LKP Securities

As the FED left key interest rates near zero, its hawkish commentary quickly washed away gains in Global Markets leading to a gap down opening in Indices back home. As FPI continued to book profits from Indian Equities, value stocks made a comeback with the PSU Bank Index rallying over 5% in Afternoon Trade today well supported by Auto stocks to stage a smart recovery. As IT & Pharma stocks witnessed profit taking, Textile stocks were sought after in the broader market on the back of earnings.

Sachin Gupta, AVP — Research, Choice Broking

Technically, the nifty index has taken an immediate support at Rising Trendline & 78.2% Retracement Levels of its prior rally on the daily chart. A momentum indicator Stochastic is also trading near oversold territory that suggests further reversal in the near term. At present, the Index has support at 17000/16900 levels while resistance comes at 17350 levels. On the other hand, Bank nifty has support at 37600 levels while resistance at 38500 levels.

Vinod Nair, Head of Research, Geojit Financial Services

Today the Indian market was affected due to the weak performance of the global market, after yesterday’s holiday, and monthly expiry. The hawkish commentary of Fed was mostly in-line with expectations, while the global market is looking at the developments of Ukraine. Any moderation in geo-political situation will lead to bottom fishing. However, the domestic trend will be muted in the short-term considering budget & state elections outcome. Systematic investment method should be a better strategy in this situation.

Deepak Jasani, Head of Retail Research, HDFC Securities

Cash volumes on a monthly expiry day touched an 8 expiry high suggesting heightened activity post the US Fed outcome and ahead of the Union Budget. Advance decline ratio was negative as broad market continued to witness profit taking post a volatile last week. Nifty has made a higher low compared to the previous day. In the near term 16998 could be a crucial support level, while 17278 could be a resistance. Whether a late Pre Budget rally will happen will depend on how the western markets behave today.