Mr. Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities
Nifty failed to surpass the crucial resistance of 18730 and plunged more than 250 points from the early morning high of 18664. From the day's low, Nifty recovered more than 100 points towards the end. At close, Nifty was down 0.6% or 113 points at 18496.
IT stocks tumbled post caution sounded by HCL Tech management. They have indicated that growth for FY23 will come at the lower end of the range than what was indicated post its 2QFY23 results due to higher-than-expected furloughs.
Among sectors, Technology, PSU Banks and Reality indices fell the most while FMCG and Pharma were the outperformers. Nifty small cap underperformed the Nifty with advance decline ratio on BSE ended at 0.5:1.
Nifty registered day's low at 18410, which happens to be the upward sloping trend line support on the daily chart. A break below 18410 could result in more selling in the index and therefore it should be kept as a stop loss in longs. On the higher side 18600-18650 level to act as an immediate resistance. Bank Nifty continued its out performance and managed closed at yet another all-time high level.