IT sector and Adani group stocks pulled the NSE Nifty 50 and BSE Sensex down on Friday. Nifty 50 now has an immediate support at 20 DEMA trading near 18641. Bank Nifty faces resistance at the 44000 while support is observed at the 43500.
Read More: Global Markets: Rate worries, stalling economies cast pall over stock markets
Benchmark indices NSE Nifty 50 and BSE Sensex ended Friday’s session deeply in red. The Nifty 50 sank 105.75 points or 0.56% to 18,665.50 and Sensex tanked 259.52 points or 0.41% to 62,979.37. In sectoral indices, Bank Nifty fell 101.95 points or 0.23% to 43,622.90, Nifty Auto tumbled 1.03%, Nifty IT sank 0.89%, Nifty Metal plunged 2.48% and Nifty PSU Bank declined 1.18%. The top gainers on Nifty 50 were IndusInd Bank, Dr Reddy’s Laboratories, Asian Paints, Bharti Airtel and NTPC while the losers were Adani Enterprises, Adani Ports, BPCL, Hindalco and Divis Laboratories.
Read More: Tata Motors Shares Surge Over 400% In 3 years, Analysts Predict Growth Momentum To Continue
“Global central banks are currently focused on addressing inflation and have reiterated their commitment to reaching their target levels, as evidenced by the hawkish commentary from Powell and the unexpected rate hike by the Bank of England. The downward revision of earnings guidance by a major US tech company Accenture has raised concerns about potential earnings downgrades in the Indian IT sector, resulting in pressure on IT stocks. However, the domestic market is not expected to experience a significant correction due to favourable domestic economic indicators and correction in international commodities prices to sustain earnings growth on a QoQ basis,” said Vinod Nair, Head of Research at Geojit Financial Services.
Read More: IPO Update: Oriana Power files DRHP with NSE Emerge for Public Issue
Nifty 50 immediate support at 20 DEMA near 18641
“Today, IT sector was hit on account of Accenture lowering the top-end of CC growth guidance to 9% from 10%. The bearish sentiment in the market was also triggered by hawkish central banks globally which dampened the appetite for risk. The entire Adani group witnessed a sharp decline amidst reports of the US attorney enquiries into investors with large stakes. On the technical front, the Nifty 50 index opened by gapping down below the 10 DEMA and continued to edge lower following a throwback from the supply area near 18,887, however, on a relatively lower volume. The index slipped 102 points from the previous close, with 41 of the 50 basket stocks closing in the red. The index now has an immediate support at 20 DEMA trading near 18,641,” said Riches Vanara, Technical And Derivatives Analyst, stoxbox.
Read More: IndusInd Bank stock surges 3% as report says Hindujas may soon invest additional Rs 10,000 cr
Bank Nifty sentiment remains bearish as long as it stays below 44000
“Bank Nifty witnessed an ongoing battle between the bulls and bears throughout the week. The index faces resistance at the 44000 level, where the highest open interest is built up on the call side. On the other hand, support is observed at the 43500PE level, where put writers are active. A break on either side of this range is likely to result in a directional move for the index. However, the overall sentiment remains bearish as long as the index stays below the 44000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
