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After The Bell: Nifty below 14700 levels; what should investors do on Friday?

The Sensex as well as the Nifty extended losses due to concerns over hike in global interest rates and bond yield due to rising commodity prices and inflationary pressures, experts say.

May 12, 2021 / 05:26 PM IST

Indian market closed in the red for the second day in a row on May 12, with both the Sensex and the Nifty50 ending around 1 percent lower. The S&P BSE Sensex fell 471 points to 48,690, while the Nifty50 ended 154 points lower at 14,696.

Sectorally, selling pressure was seen in metals, banks, oil & gas and energy, while some buying was seen in auto stocks.

The S&P BSE midcap index fell 0.9 percent and the smallcap index was down 0.6 percent.

Weak global cues largely around Fed rate hike, commodity prices as well as bond yields sent markets across the globe in a tailspin. Asian markets sank to a two-month low, while the Taiwan stock market closed with losses of more than 4 percent.

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"Indian indices extended its losses due to concerns over a hike in global interest rates and bond yield due to rising commodity prices and inflationary pressure,” Vinod Nair, Head of Research at Geojit Financial Services said.

“All major indices belled the day in negative terrain including metals, while PSU banks and media stocks managed to stay afloat. International commodity prices will have to stabilise to provide sustenance in the equity market,” he added.

Indian market will remain shut on May 13 on account of Eid-ul-Fitr

IndexPricesChangeChange%
Sensex52,344.4521.12 +0.04%
Nifty 5015,683.35-8.05 -0.05%
Nifty Bank34,558.00-47.40 -0.14%
Nifty 50 15,683.35 -8.05 (-0.05%)
Fri, Jun 18, 2021
Biggest GainerPricesChangeChange%
Adani Ports694.3547.45 +7.33%
Biggest LoserPricesChangeChange%
ONGC120.25-4.85 -3.88%
Best SectorPricesChangeChange%
Nifty FMCG36287.15103.55 +0.29%
Worst SectorPricesChangeChange%
Nifty Energy20164.20-400.30 -1.95%

Here is what experts say investors should do on May 14:

Binod Modi, Head Strategy, Reliance Securities

Weak cues from Asian markets weighed on sentiments. Notably, the Taiwan market fell sharply over 4 percent due to concerns over rising COVID-19 cases and mounting concerns over technology stocks.

While there is already a shortage of semiconductor chips that has affected the production of consumer goods and automobile industries, rising COVID-19 cases in Taiwan and a possible slowdown in chip production could be a major overhang for several companies.

Taiwan accounts for around 50 percent of global chip production and hence any sharp deterioration in chip production can impact several industries.

Rohit Singre, Senior Technical Analyst, LKP Securities

The Nifty has a stiff hurdle on the higher side near the 14900-15000 zone, and any daily close above the 15,000-mark can only activate the overall bullish stream.


If not, we may again see selling pressure from higher end. Supports are coming near 147,75-14,700 zone and if the index holding above these levels, the structure will be positive.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty pierced 14,700 intraday and managed to close around it. Hence traders would need to review the situation on May 14.

If the index holds this level, it could drop to 14,400. On the upside, if the index goes back above 14850, it can scale up to 150,00 and then 1,5200.

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited

The Nifty formed a Bearish Belt Hold candle and started to form lower highs-lower lows from the last two trading sessions.

The index has to cross and hold above 14,750 for stability and an up move towards 14,900 then 15,000, while on the downside, support exists at 14,600 and 14,500.

Mohit Nigam, President, PMS, Hem Securities

The benchmark indices closed on a negative note, mostly led by metal stocks that saw profit booking.

Wednesday was the second day in a row that the markets closed in the red. The level of 14,500 remains crucial support and the market needs to close above 14,800 to confirm positive momentum in the near term.

Tata Motors, Titan, and Maruti were among the top gainers, while Tata Steel, JSW Steel and IndusInd Bank were among the top Nifty losers.

Disclaimer: The views and investment tips expressed by the expert on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Kshitij Anand is the Editor Markets at Moneycontrol.
first published: May 12, 2021 05:25 pm

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