After opening higher, the domestic equities market gradually entered the negative zone tracking volatility due to the monthly F&O expiry and amid fears around crude oil prices. The BSE Sensex, which opened higher by 287 points, gradually inched lower as the session progressed and finally settled over 600 points down at 65,508.32. The NSE Nifty was also unable to maintain levels above 19,750 and finished the day with nearly 193 points lower at 19,523.55.
Among the 30 shares on the BSE Sensex, only 5 closed in the green — L&T, PowerGrid, Bharti Airtel, Axis Bank and State Bank of India (SBI) rising up to 1.69 per cent. The top laggards were Tech Mahindra, Asian Paints, Wipro, Mahindra and Mahindra, and Infosys declining up to 4.59 per cent.
Ajit Mishra, senior vice-president (technical research) of Religare Broking Ltd, said, “Markets resumed a negative tone after the recent breather and lost nearly a per cent on the monthly expiry day. After the flat start, Nifty gradually inched lower as the session progressed and finally settled at 19,523.55 levels. The decline was widespread on the sectoral front wherein IT and FMCG were among the top losers.”
The broader indices also felt the heat wherein midcap shed over a per cent and smallcap closed marginally in the red.
Vinod Nair, head of research at Geojit Financial Services, said, “The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the $90 level, it will be a threat to inflation and boil the operational margins. Globally, US GDP data and the US Fed chief speech will be watched carefully, which will set the future trend. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode.”
Brent crude fell 0.53 per cent on Thursday but continues to prevail above the $90 mark, at $95.95 per barrel. The dollar index was down by 0.24 per cent to 106.4.
Bank Nifty
Kunal Shah, senior technical & derivative analyst at LKP Securities, said, “The Bank Nifty witnessed a resurgence of bearish sentiment as the bears took control, pushing the index lower. Strong resistance has formed at the 20-day moving average (20DMA) located at the 45,000 mark.The immediate support on the downside is situated at 44,200, and a breach below this level could trigger further selling pressure, potentially taking the index down to the 43,800 mark. In this scenario, it’s advisable to maintain a ‘sell on rise’ approach as long as the index remains below the 45,000 mark.”
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