NSE nifty was up by 0.13 per cent or 28.15 points to 22,045 while the BSE Sensex was at 72,795 up by 0.01 per cent or 13.22 points. A total of 3,364 stocks were actively traded, 2,186 advanced, while 1,092 declined and 86 stocks remained unchanged where 32 stocks hit a 52 week high and 155 stocks hit a 52 week low at 10.15 am on Thursday.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “Benchmark indices fell heavily on Wednesday, with Nifty closing 338 points lower while Sensex closed 906 points lower. Among sectors, all major sectoral indices were trading in the red, but realty, metal, media and energy indices fell by more than 5 per cent each.
Technically, selling pressure intensified after the rejection of the 22200/73600 or 20-day SMA (Simple Moving Average) support level. After a long time, the index closed below the 20-day SMA and also formed a long bearish candle on the daily chart which is largely negative. We believe that the short-term structure of the market has turned bearish, which could push the market towards the 50-day SMA.
For day traders, 22200/73600 would act as the biggest hurdle for the market. Below that the market may slip to 21800-21600-21500/72300-71600-71300. On the other hand, any reversal from the support level could generate a quick pullback rally towards 22000/73000 towards 22100/73300. From a medium to long-term perspective, buying in select stocks is advised between 21800-21600 levels. Any move towards 22000 and 22100 should be used to reduce weak long positions.
Below 46800 levels, Bank-Nifty may fall to 46500-46200 levels, corresponding to 21800/21600 levels. Resistance will be at 47100 and 47300 levels.”
Major gainers on the NSE at 9.30 am include, Adani Enterprises (2.63%), Hindalco (1.68%), Adani Ports (1.54%), Coal India (1.43%), Hero Motocorp (1.17%). Major losers include, Bajaj Finance (-1.69%), Tata Steel (-1.60%), JSW Steel (-1.16%), TCS (-1.14%), LTIMindtree (-1.07%)
BSE Smallcap was up by 1.51% and Midcap was up by 0.79% indicating gains.