On the domestic front, markets are witnessing profit booking, with India's bluechip Nifty 50 index dropping for the first time in nine sessions on Friday, succumbing to the persistent concerns of rate hikes by the Federal Reserve that have weighed on global equities. The Nifty 50 fell 0.85 percent to settle at 19,331.80, while the 30-member S&P BSE Sensex dropped 0.77 percent to 65,280.45.
Broader market too ended in red with the Nifty midcap 100 down 0.8 percent while the Nifty smallcap 100 was down 0.4 percent. Except for PSU bank and Auto, all sectors ended in red. FMCG, Realty, and Private banks were among the top losers.
"Globally, sentiments turned sour after strong US private jobs data raised the probability of interest rate hikes by the Fed in its upcoming meeting. Investors look ahead to the release of the latest US nonfarm payrolls late Friday to provide further clues into the Federal Reserve's policy outlook," said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.
"Going forward, markets are likely to sustain the current momentum, as stock-specific action will pick up with the onset of the Q1FY24 earning season. India's retail Inflation data to be released next week would also provide some cues. The technology sector is likely to remain in focus with TCS and HCL Tech announcing their result on Wednesday followed by Wipro on Thursday," Khemka said.
Day trading guide for today
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has a buy recommendation on Bank of Baroda, Railtel Corporation of India and Castrol India. Check out the targets and stoploss.
Bank of Baroda: Buy at Rs 209, Target Price Rs 220, stop loss Rs 205
Railtel Corporation of India: Buy at Rs 132.50, Target Price Rs 138, stop loss Rs 130
Castrol India: Buy at Rs 128, Target Price Rs 134, stop loss Rs 125
Nifty Spot Index
Support – 19200/19150
Resistance - 19450/19500
Bank Nifty Spot Index
Support – 44600/44550
Resistance – 45300/45350
"The Nifty experienced a significant decline after failing to maintain its position above 19500. This drop led to the index falling below the 21EMA on the hourly chart, indicating an increasing bearish sentiment in the market. Furthermore, the hourly RSI has shown a bearish crossover, adding to the negative outlook. The immediate support level is identified at 19300, while the resistance level remains at 19500," said Rupak De, senior technical analyst at LKP Securities.
The Bank Nifty index experienced selling pressure from the bears, leading to a correction throughout the day. This upper end movement by the bears suggests a potential reversal in the trend.The hurdle for the index is currently at 44500, where aggressive fresh call writing is observed. This level is expected to act as a resistance for further upside movement.The index broke below the support level of 45000, indicating a shift in the trend. However, a follow-up action is required to confirm and sustain the downward momentum.If the index manages to sustain below 45000 on a closing basis, it is likely to continue its downward momentum towards the levels of 44500 and 44200," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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