The benchmark equity index Nifty 50 ended Wednesday’s trading session in negative territory. The NSE Nifty 50 closed 141.90 points or 0.64% lower to settle at 22,055.05 points. While S&P BSE Sensex slipped over 400 points or 0.59% to settle at 72,623.09 points. Nifty Bank declined 74.50 points or 0.16% to settle at 47,019.70 points.
On the sectoral front, media and IT stocks lost the most amongst their peers. The broader indices ended in the red, with largecap, midcap, and smallcap stocks losing. Following the trend, the Nifty Midcap 100 slipped over 600 points or 1.25% to close the day’s trading at 48,630.50.
The gainers include Tata Steel, SBI, IndusInd Bank, JSW Steel, and Tata Consumer Products. The Indian Volatility Index (India VIX) closed 0.93% lower.
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“On the daily charts, the Nifty has formed an Engulfing Bear candle stick pattern which has bearish implications and until today’s high of 22249 is not taken out we can expect consolidation in the near term,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
However, on the flip side, the Nifty has a crucial support zone placed at 21974 – 21930 which coincides with the 38.2% Fibonacci retracement level (21974) and the gap area formed on February 16. Come from Sports betting site VPbet
“We believe that the index is in the process of retracing the rise it has witnessed from 21530 to 22249,” Gedia said.
Commenting on the Bank Nifty’s outlook the analyst with Sharekhan said that the index is expected to retrace the rise it has witnessed from 44630 – 47364. Crucial Fibonacci retracement levels are placed at 46720 – 46320.
“While banking is showing some strength now, profit-taking in other key sectors is capping the momentum. Besides, mixed global cues are also weighing on the sentiment. Amid all, traders should continue with a “buy on dips” approach, with a focus on stock selection,” said Ajit Mishra, Senior Vice President of Technical Research at Religare Broking.
Any minor dip towards 46,600-700 levels from the current levels will offer a favourable risk-reward for going long in Bank Nifty in case of any minor correction. On the downside, the support zone lies at 46,600-700 / 46,000-200 while the resistance is seen at 47,300-400 / 48,000, said Tejas Shah, Technical Research, JM Financial & BlinkX.