Rising worries of a new variant is another cause of concern for the markets - Mr. Parth Nyati, Founder, Tradingo

Indian market witnessed a sharp cut on the back of weak global cues, FIIs' selling, and concerns about omicron. ECB surprises the street with a higher than expected interest rate hike while other global central banks are also sounding hawkish that is causing risk-off sentiment in the global equity markets where emerging markets are underperforming. Indian market is facing relentless selling by FIIs that is also hurting the sentiments while rising worries of a new variant is another cause of concern for the markets. High beta domestic names like real estate and banking witnessed sharp selling pressure while IT stocks outperformed on the back of strong earning by Accenture.

Technically, Nifty is witnessing sharp selling pressure after a pullback where it formed a red marubozu candlestick formation and has slipped below the psychological support of 17000 however 16900 is an immediate and important support level on a closing basis; below this, Nifty may head towards 16700-16400 zone which is crucial demand zone. On the upside, 17200-17250 will act as a critical resistance zone at any pullback.

Banknifty is also witnessing sharp selling pressure and underperforming where it has slipped below its 200-DMA however 35500-35000 is an immediate support zone; below this, we can expect further selling pressure. On the upside, the 36500 level will act as a strong hurdle at any pullback.

Source : Equity Bulls

Keywords

Tradingo MarketWrap Nifty BankNifty Sensex