Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities
Indian benchmark equity gauges Sensex and Nifty hit their over three-month lows on Friday, dragged by massive selling mainly in Adani group and banking stocks.
It was a mayhem on Dalal Street for the second day running, with today's fall being sharper than the one seen on Thursday. Adani shares were in the line of the fire following the Hindenburg report accusing the group of serious irregularities. Eight listed companies of the Adani conglomerate - controlled by Gautam Adani lost more than 3 Lakh Cr market capitalization on Friday.
Dalal Street returned to trade after the Republic Day market holiday amid largely positive moves across other global markets, after data showing slowing GDP growth in the US took away some of the concerns about a recession and rekindled hopes of less aggressive hikes in interest rates.
At close, Nifty was down by 288 points or 1.61% at 17604. Volumes on the NSE were sharply higher as compared to recent averages. Broad market indices ended the week where Nifty Midcap 100 and Nifty Small-cap 100 Index fell by 1.5% and 1.9% respectively. Declining shares outnumbered the advancing shares where advance decline ratio stood at 0.3:1 on BSE.
Among Sectoral Indices, PSU Banks and Metal indices gained the most while Auto and Pharma rose the most.
Nifty breached its 200 DEMA support of 17750 in the intraday session. Nifty has closed below the crucial support of 17761, which happened to be the multiple bottom support in the last 6 weeks. Now from here, previous support of 17761 is expected to interchange its role as a short-term resistance.
Above 17761, resistance for Nifty is seen at 18000. Below 17493, Nifty could extend its fall towards the next support of 17350.