The Indian markets closed lower for the second straight day on Friday amid volatility, as Sensex declined 143 points to 58,645 and Nifty50 settled above 17,500-level. Underperforming the benchmark indices, Nifty Mid-cap declined over 232 points to 30,442 at the market close today.

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Of 50 scrips, 16 advanced and 34 declined on Nifty. Hindalco closed as top gainer up almost 2.5 per cent, followed by ONGC, Sun Pharma and Asian Paints each up over 1 per cent at the close. On the other hand, Hero Moto closed a top loser, followed by SBI and M&M each down almost 2 per cent.

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Out of the 15 sectoral indices, 12 closed in the negative while FMCG, IT and Metal settled in the green. Nifty Metal gained most by over 1 per cent in otherwise negative market. While Nifty Auto along with banking and financials dragged the benchmarks most, whereas several realty and media stocks dragged the broader markets.

 In the broader markets, Alkem Lab, FirstSource, AB Fashion Retail each tumbled post their third quarter earnings on Friday. While Godrej Properties plummeted up to 10% as brokerages find DB Realty ‘a negative’. Similarly, M&M Fin slips for 2nd straight day after a weak set of Q3 earnings.

On the global front, Asian markets were trading higher as investors' spirits were raised by optimism fuelled by better-than-expected US earnings reports and hawkish monetary policy pronouncements from the Bank of England and the European Central Bank.

In the market this week, Sensex, Nifty & Midcap Index gained 2 per cent each after failing for two consecutive weeks, while Nifty Bank rises for second straight week, up 3 per cent – IndusInd Bank and Axis Bank are top gainers.

Except PSU, all sectoral indices record gains this week and 37 of 50 Nifty stocks gained this week – Divi’s Lab, Tata Steel, Sun top Nifty gainers. NTPC, M&M, UPL, SBI Life, BPCL and Coal India are top Nifty losers this week.

We have collated views from different experts as to what investors should do when trading resumes:

Expert: Vinod Nair, Head of Research at Geojit Financial Services.

The domestic market continued to ride yesterday’s downtrend with most sectors barring FMCG and Metal facing sell-off. Western markets also lacked strength as the Bank of England imposed a back-to-back rate hike in yesterday’s policy meeting while the dovish ECB acknowledged the risk of rising inflation signalling a rate hike in the future. Wall Street remained highly volatile as a huge sell-off was seen in Meta (Facebook) post its earnings.

Expert: Rupak De, Senior Technical Analyst at LKP Securities.

Nifty remained volatile throughout the day with a bearish tone. The consolidation may continue in the short term as long as Nifty remains with the bands of 17400 and 17800. Any directional breakout in the near term may induce further significant move in the market.

Expert: Gaurav Garg, Head of Research, Capitalvia Global Research Ltd.

Private reports claiming that the Finance Ministry's internal predictions for real gross domestic growth in FY23 are lower than the 8-8.5 percent handed forth in the 2021-22 Economic Survey damaged sentiments.

Traders, on the other hand, dismissed the IMF Managing Director Kristalina Georgieva's assertion that Finance Minister Nirmala Sitharaman's Union budget is a "thoughtful" policy programme for India, emphasizing innovation in R&D, human capital investment, and digitization.

Expert: Sachin Gupta, AVP-Research, Choice Broking

Technically, the index has slipped below the prior bearish candlestick on the daily time frame, which points out the weakness in the counter for the time being. Moreover, the index has also traded below Middle Bollinger Band formation and 21-days SMA, which indicates further bearishness for the coming day.

On an hourly chart the index has shifted below the Rising Trendline, which suggests a weakness. An indicator Stochastic witnessed a negative crossover on a daily scale. At present, the Index has support at 17400/17250 levels while resistance comes at 17800 levels. On the other hand, Bank nifty has support at 38300 levels while resistance at 39200 levels.

Expert: Ajit Mishra, VP - Research, Religare Broking Ltd 

On the domestic front, markets will first react to SBI numbers on Monday and the upcoming RBI monetary policy review will also be on the radar. Their commentary on inflation and economic growth will be key factors to watch amid the hawkish stance from the US Fed.

 In our opinion, while the benchmark might consolidate further, volatility on the broader front would be hard to handle. We thus recommend maintaining a cautious stance and keeping a check on leveraged positions.