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May 18, 2020 03:36 PM IST | Source:

Closing Bell: Nifty ends below 8,850, Sensex falls over 1,000 pts on lockdown extension; Cipla gains 5%

Among sectors, except IT other sectoral indices ended lower, with Nifty Bank fell over 6 percent followed by the auto, metal and Infra. BSE Midcap and Smallcap indices fell between 3-4 percent.

  • May 18, 2020 04:38 PM IST

    Ajit Mishra, VP - Research, Religare Broking:

    The economic package largely focused on providing credit support and guarantees and somewhere failed to touch upon the immediate need to boost consumption. Further, the rising number of cases is another factor that is constantly haunting the investors. We’ve been maintaining our negative view on markets and expect more pain ahead. Meanwhile, the guidelines for lockdown 4.0 from state governments and earnings would be actively tracked by the investors.

  • May 18, 2020 04:35 PM IST

    Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:

    Nifty has fallen towards its daily lower Bollinger Band and the bands are getting into expansion mode. This set up suggests that the selling pressure is likely to continue going ahead & the index can tumble down significantly. Once the level of 8800 is breached, 8400 will be the next key level to watch out for.

  • May 18, 2020 04:24 PM IST

    Sumeet Bagadia, Executive Director at Choice Broking:

    On technical Front index has halted the movement at 161.6% FRL i.e. 8820 level of its previous up move. Furthermore, Index has given closing below 21 & 50 DMA which further points out weakness in the counter. Moreover, The Index has formed bearish marabozu candle which suggest selling pressure in index. At present level index is having good resistance level at 9150 level while support comes at 8740 levels.

  • May 18, 2020 04:23 PM IST

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities:

    After showing range bound movement in the last few sessions, Nifty witnessed sharp weakness today and closed the day lower by 313 points. A long bear candle was formed, which indicates downside breakout of the range movement (9050-9450).
    The downside pattern target of previous bearish island reversal pattern of 4th May has been reached today at 8911 and Nifty closed below it. After showing minor higher highs and higher lows pattern on the daily chart in the last month, Nifty is currently showing negative sequential movement like lower highs and lows in the last couple of weeks. This is negative indication and any attempt of intra-week rise is expected to find selling pressure at the highs.
    The short term trend of Nifty is negative, any attempt of upside bounce could find resistance around 8950-9000. Next downside levels to be watched at 8500 in the next one week.

  • May 18, 2020 04:06 PM IST

    Deepak Jasani, Head Retail Research, HDFC Securities:

    Technically, Nifty has closed below the crucial level of 8909 and hence the intermediate trend has turned down. 8653 is the next support for Nifty while 8909 will be its resistance.

  • May 18, 2020 03:59 PM IST

    Vinod Nair, Head of Research at Geojit Financial Services:
    With the stimulus package announced by the government, not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4%, inspite of positive global cues. 

    Most measures may be seen as a longterm positive and markets were more worried about the immediate impact of these measures. With concerns about rising NPAs, financials were most affected. Uncertainty is likely to continue impacting the market performance.

  • May 18, 2020 03:56 PM IST

    S Ranganathan, Head of Research at LKP Securities:

    With an extension of the lockdown the market gave away more on a day when everything with the exception of TCS was pounded as Financials were torn apart. An Economic Package worth more than 10% of GDP yet impacting fiscal deficit to the tune of under 1% failed to cheer bulls who feared demand may not get the desired boost to spur consumption.

  • May 18, 2020 03:54 PM IST

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

    The markets continued their downtrend with no signs of recovering. I expect this southward trend to continue, the first pitstop would be 8650-8750 range where the markets might decide to take a breather. At that point, traders can again go short by intiating positions in the 8700 8750 Put Options of 28 May expiry. The next level to watch out for would be 8200.

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