Benchmark indices broke their two-day winning streak, with the Sensex closing below the 58,000 mark and Nifty below 17,200.
After a flat to positive start, the market gave up the gains and remained volatile in the first half. Indices then closed near the day's low amid selling in heavyweights, FMCG, and financials in the second half.
Sensex closed 764.83 points or 1.31Â percent lower at 57,696.46, and the Nifty was down 205 points or 1.18Â percent at 17,196.70.
"Following a positive opening, benchmark indices gave up all gains led by losses in heavyweights in anticipation of the RBI meet next week. Meanwhile, investors were also cautious after India reported Omicron cases," said Vinod Nair, Head of Research at Geojit Financial Services.
"However, global equities traded with slight gains, recovering from yesterday’s broad based sell-off led by fears on new Covid variant and Fed chair’s comments on the bond-buying program."
"RBI’s monetary policy meeting will be a key market driver as investors await MPC’s policy decision which is broadly expected to hold an accommodative stance considering the uncertainty surrounding the new variant," he added.
The broader indices outperformed the benchmarks with the BSE midcap index ending flat and the smallcap index up 0.3 percent.
Power Grid Corporation, Reliance Industries, Tech Mahindra, Asian Paints and Kotak Mahindra Bank were among the major Nifty losers. The gainers included UPL, BPCL, ONGC, IOC and L&T.
All sectoral indices ended in the red, with the Nifty FMCG index falling 1 percent, while auto, bank, IT and pharma indices were down 0.5 percent each.
On the BSE, FMCG and Bankex fell 1 percent each.
Among individual stocks, a volume spike of more than 200 percent was seen in AU Small Finance Bank, Hindustan Aeronautics, PNB and Indiamart Intermesh.
A long build-up was seen in GSPL, Chambal Fertilisers and PNB, while a short build-up was seen in Crompton Greaves Consumer Electrical, MCX India and Indiamart Intermesh.
Over 150 stocks, including Tech Mahindra, Vodafone Idea, HBL Power, hit a 52-week high on the BSE.
Palak Kothari, Research Associate at Choice Broking:
The index has taken support from the rising trend line. It has been trading with higher highs and lower lows from the past 3 trading sessions, which indicates that bullish movement is intact.
At present, the index has support at 17000 levels, while resistance is at 17500 levels. On the other hand, the Bank Nifty has support at 35300 levels with resistance at 37000 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed the week at 17197, with gains of more than one percent and formed a doji sort of candle pattern on the weekly chart after two bearish candles, which hint at indecision in the markets.
Good demand zone for Nifty is already formed near 17100-17000 and sustenance above said levels, one can expect the index to march towards 17500-17600 in the near term. But, if it fails to hold those levels, then more profit booking can push the index much lower. The immediate hurdle is near 17300-17440.
Ajit Mishra, VP - Research, Religare Broking:
We’re seeing a roller coaster ride in markets across the globe due to the news flow around the new COVID variant, and we don’t expect any relief soon. Participants have no option but to align their position accordingly and seek hedged positions.
Investors should not worry much about these fluctuations and use further dips to add quality stocks in a staggered manner.
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 making any investment decisions.
