The Indian equity market shrank to where it previously was on Thursday and saw the Nifty close at 23,550 with heavy selling across the board excluding the FMCG sector. Taking into account all things, there were some mixed sentiments in the Global market which led the global markets to trim up flat, regardless, the bears took the control anddriving the Nifty close to 23,500 in the inter day, lower than the closing on the day before’s session.

In comparison: The Sensex dropped from where it initially stood marking a total of 77,620.21 and complete a completion of 528.28 points standing at -0.68%. On the other hand Nifty witnessed a fall by 162.45 points settling on 23,526.50.

On the Nifty making great losses Tata Steel, Zomato, L&T, Tata Motors and Adani Ports while the ones gaining were Nestle India, HUL, M&M, Kotak Mahindra Bank and Asian Paints.

Sectorial Update

The Strong FMCG sector was the only outlier, with all the other sectors closing the market off with red markers, with a 1 even 2 percent decline in capital goods, IT, metal, oil & gas, PSU Bank, power and realty indices.

Alongside the BSE Midcap and Smallcap indices both suffered a decline of 1 percent.

Some of the stocks that include Network 18, Yes Bank, Alok Industries, IRCTC, Mahindra Life, Tata Technologies, and a numerous others reached their 52-week lows today on BSE, and in total around 120 stocks saw that downturn. You can find a full list through this link.

“Having opened on a slightly negative note and facing weakness to close down at 23526 points, Nifty marked this day as one in the negative for itself. In regards to the current market volatility, it can be said that the increased volatility India VIX did in fact rise up by 1.33% to reach a value of 14.66,” said Hrishikesh Yedve, the AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.

“On the daily chart Nifty can be seen having red candlesticks while managing to stay in the range of 23460-23500, particularly near the 250_DSMA support. There do remain good push back levels near the index so long as it is able to maintain 23460. If this is done then a target of 23800-23900 is more than possible. The 200-DSMA will offer good levels of resistance to the index which will explain the pushback at the 23930 region, along with this if the index finds itself below 23460 then a weakness will follow to the 23300-23200 regions.” He sighed during his brief.

“There were some weaknesses observed in Bank Nifty, as it opened the day at 49,504 and sustained below the 250-Day Simple Moving Average (250-DSMA), which is situated close to 49,900,” he remarked and added that “More barriers are observed around 50,740 with regard to the 200 DSMA.” He added that “all barriers are optional until the Bank Nifty maintains below the 50,740 mark."