The Indian market ended lower for the third straight session this week in a highly volatile session on May 25. Extended its decline for the third straight day, falling over 300 points amid a sell-off in IT stocks. Tanked 303.35 points or 0.56 per cent to end at 53,749.26. Nifty declined 99.35 points or 0.62 per cent to close at 16,025.80.
Asian Paints, TCS, Tech Mahindra, Larsen & Infosys, State Bank of India, HCL Technologies and M&M were among the top losers, falling up to 8.04 per cent. Bharti Airtel, HDFC, Kotak Mahindra Bank, Nestle, ICICI Bank and ITC were the top gainers, rising up to 3.84 per cent. BSE mid-cap and small-cap indices lost 430 points and 760 points, respectively.
IT, and capital goods shares were the top losers, with their indices falling 925 points and 644 points, respectively.
The market breadth was negative with 717 shares ending higher against 2,611 stocks falling into the red, while 116 shares were unchanged.
What experts said about the outlook of the market in today's session.
Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, "The index is currently placed at the critical support zone of the 16000 mark, and any breach below the same could dampen the sentiments once again. As far as levels are concerned, the 15700-15750 zone is expected to cushion the downside of any near-term breakdown. While on the contrary, 16200-16250 is the immediate resistance for the index, followed by the 16400 level in the near term."
"Banking and financial space has single-handedly provided a sentimental boost among the market participants. In contrast, tracking the global sell-off, IT lost its sheen and dragged the market lower. Traders are advised to keep a close tab on the global developments. Also, we advocate avoiding any aggressive bets and being selective in stock picking for trading opportunities," Krishan added.
Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said, "Daily time frame of Nifty indicates that. A double bottom around the 15735 levels and rallied sharply last Friday. Nifty has however failed to convincingly cross the recent swing high of 16,400 and is showing tiredness and has corrected in the last three sessions. Many stocks are also correcting and failing to hold on to their recent gains. Combined with the negative market breadth, this is a sign of weakness and caution is therefore warranted. Traders should wait for strength to emerge before going aggressively long. While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15,735 is broken."
The Indian market staged a stellar recovery in the previous session, backed by positive global cues. The 30-stock ended 1,534.16 points higher to end at 54,326.39. Nifty zoomed 456.75 points to 16,266.15.
How labs, Reliance Industries, Tata Steel, Nestle & Axis Bank, Bank, Sun Pharma, State Bank of India, and HDFC were the top gainers, rising up to 8.10 per cent.
Rally helped and Nifty snap their five-week losing streak with a gain of around 3 per cent.
2022 led by negative global cues. While has lost 6.74 per cent 3927 points, Nifty is down 6.27 per cent or 1087 points.
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