Bears retained their dominance at Dalal Street from the beginning for this month. Sensex sheds 1158.08 points or 2.14 percent while Nifty losses 359.10 points or 2.22 percent in a day. Today the Rupee slides to historic low of 77.63 as well.
Global indices also tumbled during the day on rising inflation concerns as the U.S inflation rises for the month of April above expectations. Weak demand outlook due to rising Covid cases in China as well also dented the pullback rally. Bank Nifty witnessed more sell off during the day. All sectors ended in red, as maximum losses were contributed by Nifty PSU Bank and Nifty metal by 5-4 percent each and not even a single sector ended with gain. In Nifty stock only WIPRO closed with marginal gain while remaining 49 stocks ended on the negative side. FIIs have pulled out almost 23,665 crore so far in the month of May would be a worry to stabilize the market. INDIA VIX has jumped 6.45 percent intraday and settled at 24.27.
Technically, The Nifty has formed a bearish candle on a daily chart. The next immediate support remains at 15650 followed by 15500 levels. While resistance is placed at 16050. Price ticking below the major moving average would be a concern for bulls. Indicators such as RSI and MACD are oversold zones. Hence buying would be expected after sustaining 16150 levels. On the other hand, Bank nifty has support at 32500 levels followed by 32000 while resistance is placed at 34600 levels.
Source: Choice India