BSE Smallcap index lost 22 percent from its record high as the broader indices remained under immense selling pressure during this week driven by Trump's reciprocal tariffs announcement, depreciation of the rupee against the US dollar, mixed corporate earnings, and persistent foreign institutional investors (FII).
During the week, the BSE Large-cap Index declined 3.3 percent, the BSE Mid-cap Index fell 7.7 percent and the BSE Small-cap index plunged 9.5 percent
This week, BSE Sensex shed 1,920.98 points or 2.46 percent to close at 75,939.21, while the Nifty50 index fell 630.67 points or 2.67 percent to end at 22,929.25.
All the sectoral indices ended in the red this week with the Nifty Realty index shedding 9.4 percent, Nifty Media falling 8 percent, Nifty Energy index declining 7 percent, Nifty Auto index shedding 6 percent, Nifty Pharma down 5.7 percent and Nifty PSU Bank index shed 5.2 percent.
“In the last week, the benchmark indices witnessed a sharp sell off, the Nifty ended 2.68 percent lower while the Sensex was down by 1900 points. Among Sectors, all the major sectoral indices were traded in to the negative territory but Reality index lost the most shed nearly 10 percent. During the week, the market slipped below 20-day SMA (Simple Moving Average) and post breakdown the selling pressure intensified,” said Amol Athawale, VP-Technical Research, Kotak Securities.
“Technically, on weekly charts, it has formeda long bearish candle and also holding lower top formation which supports further weakness from the current levels.”
“We are of the view that, the current market texture is weak and if it breaks the 22800/75200 support zone then it could slip till 22600-22500/74600-74300. On the other side, 23000/76500 important level to watch out. Above 23000/76500 we could see an extension of technical bounce back till 23200 -23300/77100-77500,” he said.
“For Bank Nifty now, 20-day SMA or 49300 would be the trend decider level. Below the same, it could retrace till 48000-47750. However, above 20-day SMA or 49300, it could retest the level of 49800-50000,” Athawale added.
The BSE Small-cap index declined 9.5 percent with more than 450 stocks lost between 10-41 percent.
NGL Fine Chem, Natco Pharma, Excel Industries, Orchid Pharma, WPIL, Tilaknagar Industries, Banco Products (India), Senco Gold, Suyog Telematics, Concord Biotech, Zaggle Prepaid Ocean Services, Prince Pipes & Fittings, Gensol Engineering, Lincoln Pharmaceuticals, Suraj Estate Developers shed between 25-41 percent. However, gainers included Garware Hi-Tech Films, Kennametal India, Godfrey Phillips India, Vimta Labs, Indo Count Industries, TCPL Packaging, Redington.
Where is Nifty50 headed?
Jatin Gedia – Technical Research Analyst at Mirae Asset Sharekhan
On the daily charts, we can observe that the Nifty has tested the swing low of 22800 for the third time in the last one month. We believe that the Nifty is likely to continue with the decline and test the lower end of the wedge 22670 – 22600 during the upcoming week.
On the upside, the resistance zone of 23000 – 23100 which coincides with the key hourly moving averages shall rise under check. A huge addition in the open interest across 23000 – 23300 Call Option strikes shall also keep the benchmark under pressure and until the call writers unwind. We expect the pullbacks in Nifty to be sold into. Overall, we shall continue to maintain our negative stance.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty continues to reel under a bear attack, closing below 23,000 after spending a few days floating above this level. Sentiment remains weak, even though the index managed to close 155 points off its low, as it continues to trade below a critical short-term moving average. A decisive fall from 22,800 could trigger further panic in the market. On the higher end, 23,100 appears to be the immediate resistance, above which the market may see some respite.
Disclaimer: The views and investment tips expressed by experts 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
