The stock market indices closed negative at end of trading on the first day of the week. Except bank, all other sectoral indices ended in red. BSE midcap and smallcap indices fell by 0.8-2.2 percent. 37 out of Nifty 50 stock closed in red, indicating broad-based selling.
On the back of global clues and SGX Nifty, the index opened on a negative note but showed the bounce back in the first half and made an intraday high at 17,315.05 level. It did not sustain at higher levels and showed profitbooking from the top and closed the session with a loss of 69.65 points. While Bank Nifty closed the session at 37,685.60 level with a gain of 86.45 points.
At close, the Sensex was down 149.38 points or 0.26 percent at 57,683.59. The Nifty was down 69.60 points or 0.40 percent at 17,206.70. About 678 shares have advanced, 2,693 shares declined, and 116 shares are unchanged.
On the sectoral front, except bank (up 0.5 percent), all other sectoral indices were trading in red with capital goods, FMCG, metal, oil & gas, pharma, down 0.5-1 percent. Stocks like Wipro, Infosys, Sree Cements, PowerGrid were the top gainers while Hindalco, UPL, Divis Labs, UPL, Adani Port were the prime laggards.
On a daily chart, the Index has formed a Doji kind of candle which suggest confusion between buyer and sellers, said Palak Kothari, Research Associate, Choice Broking. “On an hourly chart, the index has been trading with lower highs an lower lows formation which points out a weakness for an upcoming session. Furthermore, the index has traded below the middle band of Bollinger which suggests downside movement in the counter. On a daily chart, the index has been trading below 21*50-DMA with the negative crossover which suggests weakness for the next session.”
Moreover, the daily momentum indicator Stochastic & MACD were also trading with a negative crossover which adds weakness in prices. At present, the index has support at 17,000 levels breaching below the same can show further downside till 16,900-16,800 levels while resistance comes at 17500 levels. On the other hand, Bank Nifty has support at 36,800 levels while resistance at 38,500 levels, Kothari added.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, “In an extreme volatile trading session, benchmark equity indices ended lower for the fourth consecutive session on Monday amid volatility due to the ongoing Ukraine-Russia situation. Media and metal stocks registered profitbooking at higher levels while select buying interest was seen in banking and financial stocks.”
Technically, after morning fall, Nifty took the support at 17070 and revered sharply, but one more time it failed to close above 20-days SMA which is grossly negative. On daily charts, it has formed Long leg Doji formation the pattern suggest indecision of bulls and bears. “We are of the view that, 17,250-17,300 would be the immediate resistance level on the Nifty for the bulls above the same, the index could move up to 17,375. On the flip side, trading below 17,100 may increase further weakness till 17,050-17,000,” Chouhan added.
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Published on: Monday, February 21, 2022, 03:47 PM IST