Indian equity indices saw a small correction as we move slowly towards Budget 2024 on Wednesday. Nifty 50 fell 109 points or 0.45% lower, than its previous close, to settle the day’s trading at 24,324.20. Similarly, the BSE Sensex closed 427 points or 0.53% lower, than its previous close, at 79,924.77. Mahindra & Mahindra was the major loser in the Nifty 50 along with Tata Steel, Hindalco, TCS, and Hero MotoCorp. While the five major laggards contributed 95 points in the fall of the index compiling 50 stocks, out of which, M&M alone contributed 43 points in the fall
Sectoral Index
Bank Nifty fell 380 points or 0.72% to end the session at 52,189.30. Following the overall market trend, Nifty Midcap 100 pulled back 156.40 points or 0.27% closing the day’s trading at 56,921.15. In the broader markets, smallcap and midcap stocks closed in the red, however, Nifty Next 50 bucked the trend.
Sectoral draggers
Among the sectoral indices, Nifty Auto, Metal, and PSU Bank weighed on the indices. However, investors shifted their focus towards Nifty FMCG, Pharma, and Healthcare for defensive play.
Expert’s take
“The intraday slide in the index has slightly dented sentiment, but resilience in certain pockets limited the damage. We believe it is prudent to refrain from aggressive long positions in the index for now and wait for further clarity. Additionally, we have started seeing erratic swings across the board, which are likely to intensify with the start of the earnings season. Traders should prefer a hedged approach and closely monitor their position sizes,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
“We are of the view that today’s day low or 24150/79400 would act as a key support zone for the day traders. If the index succeeds in trading above the same, then it could retest the level of 24450/80500. Further upside may also continue which could lift the index till 24500-24550/80700-80900. On the flip side, below 24150/79400 selling pressure is likely to accelerate. Below which the market could slip till 24050-24000/79100-78800,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Bank Nifty
“The Bank Nifty opened on a negative note and remained under pressure throughout the day. Technically, on a daily scale, the Bank Nifty is currently placed near the lower end of the short-term consolidation zone (52,000-53,360). If Bank Nifty maintains its 52,000 support level, a relief rally is probable. On the flip side, sustenance below 52,000 levels could trigger further weakness in Bank Nifty,” said Hrishikesh Yedve, Assistant Vice President of Technical and Derivatives Research at Asit C. Mehta Investment.
