Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell on May 05 after a sharp upmove on the previous day. MSCI's clarification on inclusion of HDFC Bank to MSCI Global Standard Indices led to a sell-off in financials. At close, Nifty was down 1.02% or 186.8 points at 18069. Volumes on the NSE were on the higher side. Broad market indices fell less than the Nifty although the advance decline ratio fell below 1:1.
Asian stocks were mixed, as investors weighed the prospect of the US Fed reversing its policy-tightening campaign ahead of the U.S. jobs data due later Friday. European stocks were steady as they headed for the worst weekly decline in seven on a busy day of earnings.
Nifty hesitated to build on the gains on May 05 and fell, ending the week just 0.02% higher. In the process it formed a bearish shooting star formation on weekly charts. A breach of 18042 on the downside could take the Nifty towards 17863 and later 17550. On upmoves, 18180 could provide resistance.