The last trading session of the week started with a big fall in the Indian market, mainly due to heavy selling in IT stocks. This morning Nifty opened 177 points lower at 23,991, while Sensex fell 557 points at 76,852. It is noteworthy that on Thursday, Nifty closed 82 points higher at 24,168, and in the last five sessions it had gained more than 1,000 points.
The main reason for today’s fall is heavy selling in IT stocks; A decline of about 6% is seen in the IT index. Apart from this, indices like Auto, Metal, FMCG and Realty have also declined by more than half a percent. On the contrary, Pharma, Media and Healthcare indices are trading with gains.
Heavy fall in IT shares (9:30 am)
Market expert Anil Singhvi said that the weak guidance of Accenture is affecting Indian IT companies.
Will there be a big fall in IT stocks today?
The index is likely to fall by at least 5-6%.
Any negative news will have a negative impact on IT stocks.
ADR decline after Accenture results
Accenture’s weak outlook for Indian IT companies is negative
Infosys ADR down 10%; Wipro ADR falls by almost 3%
What to do when seeing a gap-down opening? Banks are ready to support IT sector
Direct tax collection figures released yesterday were strong
Good news for HDFC Bank also
A big breakout was seen in the stock market yesterday
‘Reflation trade’ is being seen in banks
Buying opportunity amid today’s decline
Main factors affecting the market
Oil supply resumes from Strait of Hormuz
Crude oil prices fell to $79
Accenture shares fall 19% after guidance cut
Infosys ADR down 9.6%; Wipro down 3.6%
Will keep an eye on IT shares
Other key factors
Reliance’s AGM will be held today; All eyes are on this event
Nikkei gained 0.5%; Kospi up 2%
FIIs sold shares worth ₹1,025 crore in cash market yesterday
DIIs bought shares worth ₹3,516 crore in cash market yesterday
Is Nifty breakout at 24,125 confirmed?
Nifty filled the gap at 24,126 yesterday (Gap of 8th May and 11th May)
Nifty’s 100-day DMA is at 24,225
Closing above 24,250 could trigger a new, bigger rally
Market is likely to open weak, but closing levels will be important
It is necessary to close above 24,125 again today to confirm the breakout.
Oil supply from Strait of Hormuz resumes
Crude oil prices fell to $79
Accenture shares fell 19% after guidance cut.
Infosys ADR down 9.6%; Wipro down 3.6%
Will keep an eye on IT shares
Nifty: Technical Support and Resistance
Om Mehra, Technical Research Analyst, SAMCO Securities, said that Nifty’s 100-day SMA is at 24,220, which will act as an initial resistance today. The technical setup of the market is getting better and the momentum is also getting stronger. If Nifty moves above the range of 24,220-24,250, it will move towards 24,500. At the same time, the first immediate support is at 23,990 and the second is at 23,880.
