A broad-based selloff was seen across the board with banking stocks worst hit. The downfall in equities can be attributed to weak global cues which took a jolt right after Fed’s chair hinted at more and higher rate hikes ahead.Sensex dropped by 671.15 points or 1.12% to end at 59,135.13. While Nifty 50 plunged by 172.85 points or 0.98% to close at 17,416.75 on Friday
Bank Nifty slipped by 746.65 points or 1.81% to end at 40,510.10. On BSE, the Bankex index nosedived by 863.22 points or 1.85%. Capital goods, IT, and financial services stocks also saw a significant drop.
Source: Zee Business
HDFC Bank, SBI, HDFC, and IndusInd Bank dipped by 2-3% emerging as top losers on Friday. Also, IndusInd Bank, Axis Bank, Bajaj Finserv, M&M, L&T, Reliance Industries, ICICI Bank, and Kotak Bank dragged the market with a downfall of 1-2%.
On the positive front, Tata Motors was the top gainer followed by Maruti Suzuki and NTPC.Amol Athawale, Deputy Vice-President – Technical Research, at Kotak Securities said, Markets crumbled for the second straight session as weak global cues triggered selling across the board with banking stocks taking the maximum pounding. The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, which could fuel recession fears going ahead.
For the current week, Sensex dipped by nearly 310 points or 0.52%, while Nifty 50 tumbled by 54.40 points or 0.31%.At the interbank forex market, the rupee closed the week at a broadly subdued level compared to the previous week. The currency managed to escape the steep losses in Asian peers that occurred due to the strengthening in the dollar index on rate hike fears.
On Friday, the rupee closed at 82.04 per dollar — compared to the previous day’s print of 81.9750. For the week, the rupee ranged between 81.60 to 82.30 — and closed overall with just a 0.1% upside.
Going ahead, Athawale said, technically, the Nifty has formed a strong bearish candle on the weekly charts and it is comfortably trading below the 20 and 50-day SMA. For the positional traders, 17550 would act as a medium-term resistance zone and below the same, the index could slip till 17150. On the flip side, a minor pullback rally is possible, if the index trades above 17425 and could move up to 17480-17500. Meanwhile, Bank Nifty also breached the important support level of 41000 or 20-day SMA (Simple Moving Average) which is broadly negative. Below the same, the Bank Nifty could retest the level of 40000-39800.
Source: Share Market Analysis
While Rohan Shah-head technical analyst at Stoxbox said, on the weekly chart, the lower low candle was formed, which indicates a long rejection from the previous week’s positive candle and shows a short-term target of around 17,261 next week. Intraday traders can look for long opportunities only above the resistance level of 17,470 if it sustains for 15 minutes. Traders can look for fresh shorts only if nifty breaks the 17,300 level & remains below for 15 min to ensure short.
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