Traders Guide: The Indian markets pared early gains and ended lower on Friday in line with weak trend in Asian markets and concerns that the US Federal Reserve might raise interest rates further to curb inflation.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Fresh foreign fund outflows and selling pressure in HDFC twins also dented investor sentiments. The BSE Sensex declined 141.87 points or 0.24 per cent to settle at 59,463.93 despite a firm start and the NSE Nifty dipped 45.45 points or 0.26 per cent to end at 17,465.80.

"The Nifty opened on a positive note however it could not sustain at higher levels and as the day progressed it continued to drift lower to close the day on a negative note for the sixth consecutive day," said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

Also Read: Market Next Week: February auto sales, macroeconomic numbers and global cues among other top factors for Dalal Street

What should investors do on Monday?

The last week’s fall has almost engulfed gains of the last three weeks and Nifty has reached closer to the budget day low that is 17,353.40. It might take a breather next week initially but the tone is likely to remain negative, with the next crucial support at 17,100.

Further, correction in US markets could add to the pessimism. Amid all, the majority of the sectors are facing heat, but the continuous underperformance of the banking and financials would remain the key concern.

We thus recommend continuing with the “sell on rise” approach until the Nifty shows some signs of reversal.

- Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Technical Outlook

Technically, we are in a short-term decline, but we are very close to the 200-day moving average's critical support level, which also happens to be the low for the budget day. Bulls will therefore attempt to protect the Nifty's 200-day moving average.

If Nifty is able to maintain its 200-DMA, the index would form a double bottom, which might trigger a market rebound. On the upside, the 20-DMA near 17,770 will continue to serve as a significant hurdle; above it, we may anticipate a short-covering move in the direction of the 18,000–18,100 range. However, there will be more selling pressure if Nifty is unable to hold its 200-DMA, and 17,130 will be the next support level.

Similar trends can be seen in Banknifty, where the 200-DMA and budget day's low are both close to 39,400. If it can maintain this level, we can anticipate a rebound in the direction of 41,000 and 41,500, but if it drops below its 200-DMA, we can anticipate further selling pressure around 38,500.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Key support & resistance levels for Nifty50:

The Nifty50 closed 0.26 per cent lower at 17,465.80. Key Pivot points (Fibonacci) support for the index is placed at 17427.8, 17385.8, and 17317.8, while resistance is placed at 17563.8, 17605.8, and 17673.8.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 0.23 per cent higher at 39,909.40. Key Pivot points (Fibonacci) support for the index is placed at 39823.31, 39698.42, and 39496.26, while resistance is placed at 40227.62, 40352.51, and 40554.67.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Sell-off spree continues: Foreign investors withdraw Rs 2,300 crore from Indian equities in February

FII Activity on Friday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 1470.34 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1400.98 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Cyber Media Research: Vivek Kumar Bhauka bought 20,000 equity shares in the company at the weighted average price Rs 141.08 per share on the NSE, the bulk deals data showed.

Integrated Perso Ser Ltd: Sadashiv Kanyana Shetty bought 46,000 equity shares in the company at the weighted average price Rs 80.14  per share on the NSE, the bulk deals data showed.

Nath Bio-Genes (I) Ltd: Jaideep Narendra Sampat sold 1,00,000 equity shares in the company at the weighted average price Rs 145.75 per share on the NSE, the bulk deals data showed.

Phantom Digital Eff Ltd: Harish Kumar Gupta sold 68,400 equity shares in the company at the weighted average price Rs 174.18 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

No stock is placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs