The Indian benchmark indices started the week with a negative attitude. The process of decline continued for the second day today. Between selling in IT, financial and pharma shares, the Nifty 50 slipped below 25,200 in Intrade today. The pressure on IT shares was seen after US President Donald Trump imposed a $ 1,00,000 fee on the new H-1B visa. However, some improvement was observed after clarification on this. Also, the implementation of GST from today and frequent purchases in the shares of Adani Group helped reduce the decline in day trade.
This, due to this, the Sensex fell at 82,159.97 at 82,159.97 and the Nifty fell at 25,202.35 at 82,159.97, or 0.49 per cent. BSE midcap and smallcap indices recorded a decline of 0.7 percent. Looking at different sectors, the IT index declined by 2.7 percent and pharma 1.2 percent, while the power index recorded 1.6 percent, the oil and gas index 0.4 percent and the metal index increased by 0.4 percent.
Tech Mahindra, TCS, Infosys, Wipro and Cipla were the most fallen shares of Nifty today. Whereas, Adani was the highest growing shares of Enterprises, Bajaj Auto, Eternal, Adani Ports and Bajaj Finance Nifty.
Srikanth Chauhan, Head of Equity Research of Kotak Securities, says that today the benchmark index continued to have profits at the upper levels. The Nifty closed down 125 points and the Sensex closed down 466 points. The IT index in the Sector -wise index declined by about 3 percent. At the same time, Intrade purchases were seen in select energy and digital stocks.
From a technical point of view, intraday recovery was observed in the market after the gap-down opening. But due to frequent profits at the upper levels, the second part of the trading session declined drastically. The recession candles on the lower top and daily chart on the intraday chart are indicating more weakness from existing levels.
He further said that as long as the market is trading below 25300/82500, there will be an atmosphere of recession. At the bottom, it can fall to 25100-25050/82000-81700. On the other hand, 25,300/82500 will serve as a major resistance area for the day traders. If the market is successful in trading above this level, it can go up to 25,400-25,425/82800-83000.
Anand James, the main market strategist of Geojit Financial Services, says the Nifty’s reaching 25,400-25,600 levels last week reflects the possibility of pullback. He further said that the support level of 24,880-24,800 is visible for Nifty. While the resistance level remains around 25,669.
Roopak Dey, Senior Technical Analyst of LKP Securities, says that the Nifty has been seeing a decline for the last two days. Given the rise of 1,000 points earlier, this decline is normal. In fact, such small improvements are good for constant boom.
Roopak Dey says that the short term has a support level at 25,050 for Nifty. As long as the index remains above this level, it will be expected to boom. At the same time, if it goes below 25050, then up to 24,800 may fall.
