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Mumbai: The markets squandered gains earned in the first half of the trading session towards the close as expiry related pressure took its toll on the benchmark indices. Financial shares in particular were responsible for the days’ change in fortune.
The BSE benchmark index, the Sensex, opened with a positive gap of 190-odd points at 38,263, and rallied to a high of 38,414 in mid-morning deals, up around 340 points from the previous close. However, weakness in the latter half of the day saw the BSE index slip into red and tumble to a low of 37,678 – down 735 points from the day’s high. The Sensex finally ended with a loss of 335 points at 37,736.
Among the Sensex 30 stocks, IndusInd Bank was the major loser, the stock plunged over 5.5 per cent. HDFC and Axis Bank dropped around 3.5 per cent each. PowerGrid Corporation, SBI, Bajaj Finserv, Bharti Airtel, ONGC, Bajaj Finance, Tata Steel and ITC were the other significant losers, down 2-3 per cent each. On the positive front, Sun Pharma surged 3.5 per cent. Maruti Suzuki, Infosys and Reliance Industries were the other notable gainers.
The BSE index has now given a fresh sell signal on the weekly Fibonacci chart, by breaking the S1 level at 37,720. The BSE index is now likely to test the weekly S2 or S3 at 37,600-37,470, respectively. On the upside, the BSE index is likely to face resistance around 37,900 and 38,130.
As per the daily Fibonacci charts, on Friday, in case of an up move the BSE Sensex is likely to face resistance around 38,020-38,100-38,190, and in case of a down move, the BSE index may seek support around 37,450-37,370-37,280.
As anticipated, the NSE Nifty not only extended losses but also fell sharply after breaking the support of 11,150. The NSE index from a high of 11,300 tumbled to a low of 11,085, before settling with a loss of 0.9 per cent at 11,102.
Going forward, the NSE index is now likely to seek support around its 20-DMA (Daily Moving Average) at 10,930 or slip a further more to test its 200-DMA around 10,860-odd level. In case of an upside, the Nifty is likely to face considerable resistance in the 11,225-11,300 range. In the near term, the bias seems slightly negative, while overall the uptrend remains intact.
Among the key momentum oscillators on the daily charts, the Slow Stochastic is negative. The DI (Directional Index) continues to remain positive, but is seen trending lower in the last couple of trading sessions. The MACD (Moving Average Convergence Divergence) remains inconclusive, while the 14-day RSI (Relative Strength Index) is now in neutral mode.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.



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