India VIX zoomed 14.85% during the day to close at 17.49. (Image: REUTERS)
Monday madness on Dalal Street forced Sensex and Nifty to end deep in the red with losses, giving up intra-day gains. On the closing bell, S&P BSE Sensex was down 525 points or 0.89% at 58,490 while the NSE Nifty 50 index was down 188 points or 1.07% at 17,396. Hindustan Unilever was the top Sensex gainer, ending 2.96% higher, followed by Bajaj Finserv, and ITC. Tata Steel shares tanked 9.53%, followed by State Bank of India, IndusInd Bank, and HDFC. Bank Nifty ended 1.76% lower at 37,175. India VIX zoomed 14.85% during the day to close at 17.49. Broader markets ended in the red.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities-
“Global equity markets witnessed steep corrections and Indian markets also followed suit as there was wide-spread selling, especially in banking, metals and realty stocks. After a sharp rally in recent sessions, the markets could see some bouts of volatility in the near future. Benchmark Nifty has formed a strong reversal formation which clearly indicates high chances of a further correction from current levels. The texture of the market is weak and downward momentum could continue in the short run. For the next few trading sessions, the 17525 level could be the sacrosanct resistance level for the traders, and trading below the same we can expect further price correction up to 17300-17250 levels, whereas trading above 17525 may trigger a quick pullback rally up to 17625-17675 levels. Contra traders can take a long bet near the 17250 support level with a strict 50 points stop loss.”
Vinod Nair, Head of Research at Geojit Financial Services–
“Following high volatility and weak global sentiments, the domestic market ended in a bear grip with Metal and PSU Banks leading the downward rally. Global markets traded negatively as investors were cautious ahead of multiple central bank policy meetings scheduled this week. However, due to weak US job data and inflation increasing at a slower pace, Fed is not expected to hint on taper plans in the upcoming meeting.”
S Ranganathan, Head of Research at LKP securities –
“Amidst heightened volatility and weak global cues the Nifty Metal Index plunged almost 7% in late afternoon trade today. As global markets corrected fearing the contagion around the Chinese Developer, risk aversion was seen across markets. Barring the FMCG pack, the market breadth was extremely weak with sectoral indices trading in the red.”
Palak Kothari, Research Associate, Choice Broking –
“On the technical front, the Index has confirmed the shooting star as well as formed Bearish Marabozu Candle on four hourly charts which suggest some profit booking can be seen in the next trading session. Moreover, the index has faced resistance from 21HMA and given closing below the same, which further adds weakness in the counter. Moreover, the Stochastic and MACD indicator is showing weakness with negative crossover on a daily time frame which indicates southward direction in the upcoming session. At present, the nifty seems to have resistance at 17778 levels while immediate support comes at 17250 levels, breaching below it can show further downside.”
Manish Shah, Founder, Niftytriggers –
“Nifty settled lower for the day and it was a bearish start to the week. In terms of the magnitude; the last two days saw a big decline as Nifty dropped from the high at 17792 and more than 400 points in two days. This is one of the largest two-day declines in the last couple of months. The MACD is still in a buy more and +DMI is above –DMI. The underlying trend is still intact but we have to be careful as Nifty may be getting a prolonged corrective decline. It is going to be a bit tricky navigating the markets for the next couple of days. Support in Nifty is at 17240 and a break below 17240 and we could see a decline towards 17050 points. For the rally to continue Nifty needs to move above 17580-17600.”
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