Sensex tanks for second day straight as bears remain in control, Nifty support shifts to 17800-17850

Domestic markets mirror global peers and settled deep in the red on Wednesday. S&P BSE Sensex ended 656 points to 1.08% lower at 60,098 while the broader NSE Nifty 50 closed 174 points or 0.96% in red at 17,938. Bank Nifty was down 0.44%. State Bank of India was the top Sensex gainer, up 1.83%, followed by Bajaj Auto, Tata Steel, and Maruti Suzuki India. Infosys was down 2,77% as the top laggard, followed by Asian Paints, Nestle India, and Hindustan Unilever. Broader markets closed with losses except smallcap indices that witnessed some buying. India VIX closed at 17.82 levels.

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty fell for the second consecutive session but ended a little above the intraday low. The advance-decline ratio is below 1:1 but better than the previous day. If western markets stabilise today, we could see a better opening on Jan 20. 18081-17813 is the band for the nifty in the near term.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“The market was unable to hold on to the 18000 level. It should now take support at the 17800-17850 zone. If the Nifty needs to turn, this is the juncture from where that is possible. If we break 17850, the index could slide further to 17650.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, the index has confirmed the bearish engulfing pattern which suggests some correction can be seen in an upcoming session. However, the index has taken support from 23.6% RL of its previous rally which suggests breaching below the same can show downside movement. Moreover, the index has been trading below 21&50-HMA with a negative crossover as well as a momentum indicator MACD is trading with a negative crossover on an hourly time-frame which suggests weakness in the counter. At present, the Index has support at 17800 levels while resistance comes at 18180 levels. On the other hand, Bank nifty has support at 37800 levels while resistance at 38600 levels.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Globally, risk sentiments took a blow as rising inflation resulting in elevated bond yield along with the on-going geopolitical tensions and surge in oil prices weighed on investor confidence. This along with consistent FII selling forced the domestic market to trade in favour of bears for the second consecutive day. The UK’s inflation rate rose to 5.4% in December from 5.1% in November owing to rising demand, surging energy costs and supply constraints.”

Rupak De, Senior Technical Analyst at LKP Securities –

“Weakness entered into the second day as Nifty slipped below the 18000 mark. Selling pressure during the day dragged the Nifty below 10 days exponential moving average for the first time since December last year. Besides, two back to back significant red candles on the daily chart indicate weakness in the market which may extend over the near future. On the lower end support is visible at 17880, below which the index may dip towards 17750. Resistance is pegged at 18050/18200.”