A historic day for Indian markets as Sensex and Nifty broke above crucial levels for the first time in history. The S&P BSE Sensex climbed Mount 40K while the Nifty50 climbed above 12,000 levels.
Volatility was on the rise as Nifty fell nearly 400 points from its record high of 12,041 in the last hour of the trading session. According to CNBC-TV18, the Indian market witnessed its biggest intraday fall in last 11 years.
The S&P BSE Sensex hit a fresh record high of 40,124, and the Nifty50 hit a fresh lifetime high of 12,041 on Thursday. Let’s look at final tally on D-Street – the S&P BSE Sensex slipped 0.7 percent to 38,811 while the Nifty50 dropped 80 points to close at 11,657.
India VIX fell sharply by 29.77 percent to 19.04. India VIX made a new record high of 30.18 on May 22 and fell drastically post the election result. Now VIX has to cool down below 16 to get the short term stability in the market.
It was a classic case of ‘buy on expectation and sell on news’ which kind of have played out in Thursday’s session.
Strong election verdict is beyond expectation and long-only money, both from FIIs and local investors will surely resume in the next few trading sessions, suggest experts.
With stability and visibility back in place, experts feel that investors should focus more on Mid & Small caps rather than large caps.
Rupee erased all the intraday gains and closed weaker against the US dollar to close at Rs 70.02/$.
On the provisional front, FPIs were net buyers in Indian markets for Rs 1352 crore while the DIIs were net sellers in Indian markets to the tune of Rs 593 crore, provisional data showed.
Technical View:
Nifty forms a long bearish candle on the daily charts
The index lost 244 points from its opening levels and formed large bearish candle on the daily charts.
The kind of consolidation in the second half and loss of 384 points from record high indicate that top is in place and there could be some rangebound move in coming sessions, experts said.
The index posted the biggest intra-day fall in the last 11 years and closed 80.90 points lower at 11,657.
Three levels: 11614, 11800, 12000
Max Call OI: 12000, 12500
Max Put OI: 11000, 10500
Technical Recommendations:
We spoke to Epic Research and here's what they have to recommend:
BF Investment: Buy| LTP: Rs 255| Target: Rs 267| Stop Loss: Rs 251| Upside 4%
Century Textiles Ltd: Buy| LTP: Rs 991| Target: Rs 1005| Stop Loss: Rs 990| Upside 2%
Union Bank of India: Buy| LTP: Rs 70| Target: Rs 71.50| Stop Loss: Rs 69| Upside 2%
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