After The Bell: Sensex, Nifty lose over 1% each, what should investors do on Friday?
The index has formed a good base near the 13,800-13,700 zone and if it manages to hold the level, we may see a swift pullback towards 13,900-14,000, which is the immediate hurdle. January 28, 2021 / 05:42 PM IST
The Indian market tanked for the fifth day running on January 28, pushing both the Sensex and the Nifty below crucial support levels.
The S&P BSE Sensex fell by more than 500 points, while the Nifty50 also saw a downtick for more than 100 points on the F&O expiry day.
The market has turned cautious ahead of the budget and weak global cues also dampened the sentiment. The Nifty50 has lost about 1,000 points in a matter of days.
NEW DELHI: Nifty50 on Thursday formed a ‘Doji’ candle on the daily chart, as buying emerged at lows, helping the index settle above the 13,800 mark. While it is an indecisive candle, a Doji after a sharp drop gives hope of a trend reversal. A confirmation, though, will still be needed.
The index closed the session at 13,817, down 149 points or 1.07 per cent. During the day, Nifty breached its 50-day simple moving average and also tested the 61.8 per cent retracement of the December-January rise at 13,750, a level that later offered some cushion.
“Thursday’s low of 13,713 now becomes the near-term support. Fresh shorts can be initiated once this low breaks. A subsequent target on the downside would be 13,500. On the higher side, the gap area between 13,898 and 13,929 levels will act as a resistance in case of any minor degree bounce, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
Taking Stock | Market falls for 5th day in row; Nifty ends below 13,850
HUL, Maruti Suzuki, Wipro, HDFC Bank and Power Grid Corp were among major losers on the Nifty, while gainers were Axis Bank, SBI, Shree Cements, IOC and Hero MotoCorp. January 28, 2021 / 04:25 PM IST
Indian indices fell for the fifth consecutive session on January 28 on the back of negative global cues amid investors booking profits at higher levels ahead of Union Budget. At close, the Sensex was down 535.57 points or 1.13% at 46,874.36, and the Nifty was down 150 points or 1.07% at 13,817.50. Index closed a day on a negative note for the fifth consecutive session at 13,825 with loss of one percent and formed a Doji candle pattern on the daily chart which suggest some reversal may be expected in coming sessions, said Rohit Singre, Senior Technical Analyst at LKP Securities.
Synopsis
Analysts expect volatility to remain high in the coming two sessions as the January derivatives contracts are scheduled to expire on Thursday.
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NEW DELHI: Nifty had a gap-up opening on Monday but ended up shedding almost a per cent in intraday trade. The headline index formed a long bearish candle on the daily charts as the 50 pack continued it s losing streak in the third consecutive session.
Analysts expect volatility to remain high in the coming two sessions as the January derivatives contracts are scheduled to expire on Thursday.
Rohit Singre, Senior Technical Analyst at LKP Securities said: The index has breached all good support which means if the index manages to sustain below today’s (Monday’s) low, then the index may hit 14,000 mark soon which is a strong support on the downside. On the higher side, the index found good resistance in the 14350-14440 zone and it would be the profit booking level for longs.
Aditya Agarwala of YES Securities said the “Three Black Crows” is a bearish candlestick pattern, and noted that the index has shut shop below the 20-DMA support line at 14,300, which was acting as the stop loss line since November 2, 2020.