The Indian equity benchmarks concluded a turbulent week deep in the red, as intense selling pressure gripped Dalal Street. The key indices suffered significant losses, with the broader market facing an even sharper correction, signaling a risk-off sentiment among investors.
Market Carnage: Indices and Sectors Bleed
The Nifty 50 index closed the week with a steep decline of 2.37%. Meanwhile, the 30-share BSE Sensex witnessed a massive single-week fall of 2185 points. The pain was not uniform across sectors. While the Defence index managed to gain 1.30%, other sectors were hammered. The India Tourism, Oil & Gas, and Energy indices were among the worst performers, each shedding over 5% during the week.
The trading activity also reflected the cautious mood, with the NSE cash market turnover dipping by 2% compared to the previous session. The sell-off was particularly brutal in the broader market. The Nifty Mid-cap 100 Index slipped 0.79%, and the Nifty Small-cap 100 Index plunged a worrying 1.81%.
This widespread selling led to a severe deterioration in market breadth. The number of declining stocks far outpaced the advancing ones. The BSE advance-decline ratio stood at a weak 0.34, confirming that the selling pressure was broad-based and concentrated in mid and small-cap stocks.
Expert Technical Analysis: Nifty and Bank Nifty at Crucial Junctures
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, stated that market sentiment has turned nervous. She pointed out that the Nifty 50 index corrected further after breaking below its 50-day Exponential Moving Average (DEMA) support at 25,900. The index is now hovering near its 20-DEMA support placed at 25,530.
Elaborating on the Nifty outlook, Parekh said, "The index witnessed heavy profit booking, breaching the 25,700 zone. The bias and sentiment are now in a nervous state. The next major and crucial support is positioned near the important 200-period Moving Average at the 25,000 zone." She added that with anxiety creeping in, the index is precariously placed. The immediate support is at the 100-period MA at 25,500, which needs to hold to prevent further intensified selling pressure.
On the Bank Nifty index, Parekh noted that it slipped further with profit booking in major banking stocks, ending near the day's low at 59,250. "The index would have important near-term support at the 58,700 zone, which needs to be sustained to keep the overall bias intact. A breach could trigger a further slide towards the next major support near the 200-period MA at 56,300," she cautioned.
Parekh identified immediate support for Nifty at 25,500 and resistance at 25,900. For Bank Nifty, she expects a daily range between 58,700 and 59,700.
Intraday Stock Picks from the Expert
Despite the weak market backdrop, Vaishali Parekh recommended three stocks for intraday trading based on technical chart patterns:
1. Tata Capital: Buy at ₹355, Target ₹375, Stop Loss ₹345. The stock is in a bull trend, and the chart suggests the next round of upside momentum is likely.
2. IGL (Indraprastha Gas Limited): Buy at ₹186, Target ₹192, Stop Loss ₹182. The stock has formed a double bottom pattern at ₹180 and appears poised for an upward move.
3. OIL (Oil India Limited): Buy at ₹420, Target ₹440, Stop Loss ₹410. This PSU stock is near its support level of ₹410, and the chart pattern indicates a potential trend reversal.
Gold and Silver Shine Amid Global Turmoil
In contrast to equities, precious metals soared. Gold and silver prices in the international market surged to record highs. This rally was fueled by a weak US dollar and elevated geopolitical tensions, including protests in Iran. Silver opened with a gap up and touched a new peak of $83.880 per ounce, surpassing its previous high. Similarly, gold prices scaled a new intraday high of $4,612.40 per ounce.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are advised to consult certified experts before making any investment decisions.
