Sensex, Nifty snap gaining streak on F&O expiry; Nifty support at 16,500, markets to remain shut on Thursday

BSE Sensex and Nifty 50 ended in the negative territory in the fag-end selling on weekly F&O expiry day. BSE Sensex fell 163 points from yesterday’s close to end at 55,629, after hitting a new record high of 56,118. While Nifty 50 index gave up 16,600 levels, despite surging to 16,701.85, a fresh all-time high. Profit booking in index heavyweights such as ICICI Bank, Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank and Infosys contributed the most to the indices’ loss. In the broader market, BSE Midcap index outperformed the equity benchmarks, rising 0.3 per cent to 23,121.77. While BSE Smallcap index fell 0.18 per cent to settle at 26,237.88. Indian stock markets will remain shut on Thursday on account of Muharram.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

The market had been rallying sharply over the past few sessions and hence investors booked some profit today, but not before key benchmark indices hit fresh record highs in early trade. After a long time on daily charts, Nifty has formed a bearish candle and intraday charts are also indicating a further weakness from current levels. In the near future, the benchmark index may consolidate between 16420 to 16700 levels. On the down side, 16500-16450 could be the key support levels. On the other hand, the 16650-16700 level would be the immediate hurdle for the index. Below the 16450 level, uptrend could be vulnerable.

Rohit Singre, Senior Technical Analyst, LKP Securities

Index opened a day with a strong gap but profit booking from higher-end led index closed in negative territory at 16569 with loss of nearly half per cent and formed a bearish candle after forming bullish candles for four consecutive sessions. The index has formed dark cloud cover candle pattern on the daily chart which is bearish reversal candle pattern by nature, the index still has good support zone at 16500 if broke then we may see more profit booking comes in & we may see index dragging towards 16400 zone and now resistance is coming near 16630-16700 zone.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Nifty gave a sharp correction after making a lifetime high of 16701 and closed near its day low at 16550 down by 60 points. Banknifty also closed below its key support level at 35480 down by 380 points. Today’s bearish movement indicates a beginning of a possible correction. Nifty has support at 16480 and 16450 levels below which it can test 16350. Banknifty can test 35200 and 35000 in the next few days.

Rahul Sharma, Co-Founder, Equity99

Decisions in the ongoing CCEA meeting will affect markets on Friday. Sector to focus on Friday are Automobiles, Logistics, IT, Pharma. Nifty in the first half of today’s session made historical high levels of 16701, in the second half of market the momentum went low and we witnessed a decline of 45.75 points & closing at 16568.85. Going ahead, for Friday, Nifty will have immediate support at 16500 levels followed with 16450-16375 levels and on the upside 16700 will act as resistance. Nifty Bank which underperformed Nifty50 which lost more than 400 points and closed at 35554.50 has immediate support at 35300 & if it breaks this level then 35000- 34850 will be the next support level. On the upside 35800 will be the hurdle above which 36000-36200 will act as a resistance level.

Vinod Nair, Head of Research, Geojit Financial Services

Succumbing to profit-booking, Indian market gave away its gains. Bleeding banking, realty and metal stocks dragged while midcaps provided some relief but the broad trend was weak. European markets traded cautiously as Eurozone inflation accelerated to 2.2% in July, beating ECB estimates of 2% owing to a spike in energy prices. The market are awaiting the US Fed meeting minutes to provide some direction on future policy, which is expected to showcase its current accommodative policy in-line with the latest policy statement.