Ahead of Market: 10 things that will decide D-Street action on Friday
The 30-share BSE Sensex fell 570.60 points or 0.85% to settle at 66,230.24. The Nifty declined 159.05 points or 0.80% to end at 19,742.35.
Except for the Media, all the sectors ended the day in red. PSU Bank emerged as the top loser owing to profit booking followed by the Auto space.
The Midcap index moved in tandem with the Frontline Index while Smallcap underperformed.
Here's how analysts read the market pulse:
«Domestic market declined following a hawkish stance by the Fed chair and prolonged high interest rate trajectory which is not positive for a slowing global economy. PSU Banks and Mid & Smallcaps were the worst hit due to stretched valuations and concerns over moderation in yields. Rising oil prices and erratic rainfall further led investors to stay cautious in the market,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“The Nifty opened gap down for the second consecutive day and closed around the lows for the day.
It closed down ~159 points. On the daily charts we can observe that the Nifty is in the process of retracing the rise it has witnessed 19223 – 20222. It has now reached the zone of 19720 – 19680 where support in the form of the 20-day moving average and the 50% Fibonacci retracement level is placed.
We expect Nifty to hold on to this support and provide a pullback. The daily momentum indicator today has provided a negative crossover which is a sell signal and is now in sync with the price action. In terms of levels, 19680 – 19604 is the crucial support zone while 19850 – 19900 shall act as an immediate hurdle zone,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
That said, here’s a look at what some key indicators are suggesting for Friday's action:
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