Mumbai: On Thursday, Nifty dropped below the crucial 19,000-point level for the first time in four months, highlighting the increasing influence of bears on the stock market. Rupak De, Senior Technical Analyst at LKP Securities, commented on this bearish development.
The Nifty index closed 281 points down at 18,841, while the Sensex plummeted by 900 points, ending the day at 63,148. The presence of a bearish crossover in the momentum indicator further bolsters the negative momentum. In the current market scenario, the support levels appear delicate and susceptible. Despite a recent sharp decline, there is a strong possibility of further correction from the current levels.
De pointed out that support on the lower end can be observed at 18,600-18,645, with resistance levels positioned at 18,950-19,000.
Nagaraj Shetti, a Technical Research Analyst at HDFC Securities, concurred that the short-term trend of Nifty remains negative. Although the market has entered an oversold region, there is a likelihood of an upside bounce from the current lows. However, a decisive move below 18,800 levels could expose the index to further declines in the range of 18,500-18,600 in the near term.
A decline in shares of fertiliser companies was noted following the government’s decision to reduce subsidies for the upcoming Rabi season, as highlighted by Deepak Jasani, Head of Retail Research at HDFC Securities.
On the previous day, the government approved a nutrient-based fertiliser subsidy amounting to Rs 22,303 crore. Notably, revised subsidy rates for nitrogen, phosphorus, and potassium fertilisers have been significantly reduced, responding to the decline in input prices.
The Nifty Metal and Nifty Auto sectors suffered the most, with losses of 1.62% and 1.59%, respectively, as reported by Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
Among individual stocks, Axis Bank, HCL Technologies, Adani Ports, IndusInd Bank, and ITC emerged as the top gainers on the Nifty. Meanwhile, the biggest losers included M&M, Bajaj Finance, Asian Paints, UPL, and Bajaj Finserv.
