Indian benchmark indices ended lower on April 29, with the Nifty closing near 17,100 mark amid selling across sectors.
On the back of positive global cues, the Nifty started the May F&O series on higher note and remain in the positive territory, before witnessing profit booking in the final hour of trade.
At close, the Sensex was down 460.19 points, or 0.80 percent at 57,060.87, and the Nifty was down 142.50 points or 0.83 percent at 17,102.50.
For this week, BSE Sensex and Nifty lost 0.23 percent and 0.40 percent, while April saw a fall of 2.57 percent and 2.07 percent, respectively.
“Dips were encouraging investors to accumulate quality stocks with focus on defensives & domestic growth sectors like manufacturing & capital goods,” said Vinod Nair, Head of Research at Geojit Financial Services.
“However, a shrink in the US economy and rate hike expectations in the upcoming Fed meet triggered sell-off in the global market. Domestic market reduced exposure ahead of the shortened next week and opening of India’s largest IPO,” he added.
Axis Bank, Coal India, Adani Ports, Power Grid and Bajaj Auto were among the top Nifty losers, while gainers were HDFC Life, Tata Consumer Products, Kotak Mahindra Bank, Sun Pharma and HDFC Bank.
Among sectors, Nifty Bank, Auto, Energy, PSU Bank, IT fell 1 percent each.
Stocks and sectors
On the BSE, all the sectoral indices ended in the red with bank, oil & gas, realty, power, IT and capital goods indices lost 1-2 percent.
The BSE midcap index fell 0.81 percent and smallcap index fell 0.58 percent.
A long build-up was seen in Shriram Transport Finance Corporation, Indian Hotels Company and Multi Commodity Exchange of India, while a short build-up was seen in Gujarat Gas, Indraprastha Gas and Mahanagar Gas.
Over 100 stocks, including Reliance Industries, HBL Power Systems, CRISIL, Chennai Petroleum Corporation touched their 52-week high on the BSE.
Outlook for May 2
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed a volatile action in the week gone by & ultimately formed an Inside bar on the weekly chart. For the last couple of weeks, the index is oscillating near its key weekly moving averages & this has developed as a triangular pattern on the daily chart.
On April 29, the index faced resistance near the junction of the swing high on the daily chart & the 20 DMA i.e. near 17400. Thereon, the Nifty nosedived towards the end of the session & formed a bearish outside bar as well as an Engulfing bear candle on the daily chart.
Overall structure suggests that the index can continue to consolidate in the range of 17000-17400 & once the swing low of 16958 is breached then the index can tumble down towards 16600.
Mohit Nigam, Head – PMS, Hem Securities:
The Indian equity benchmarks trimmed all of their gains in late afternoon session and ended in red.
On technical front, Nifty50 may take support at 16,950 levels and may face resistance at 17,400 levels. In case of Bank Nifty immediate support and resistance levels are 35,700 and 36,600 level respectively.
Ajit Mishra, VP – Research, Religare Broking:
Markets remained volatile and ended with a cut of nearly a percent, in continuation of the prevailing consolidation phase. The benchmark opened higher amid supportive global cues and inched higher gradually as the day progressed. However, the news of war intensifying between Russia-Ukraine completely changed the tone in the latter half.
As a result, the Nifty index erased all the gains and settled around the day’s low, to close at 17,102 levels. The selling pressure was widespread wherein banking, auto and energy lost maximum. The broader markets too ended in the red and lost in the range of 0.8-1.3 percent.
We’ve been seeing the index oscillating in a broader range for the last two weeks and there’s no clarity over the next directional move yet. We reiterate our cautious view and suggest waiting for a decisive break from the 16,800-17,300 range. Apart from the global cues, domestic factors like earnings, LIC IPO and auto sales numbers will also be in focus.
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