Technical View: Nifty ends below 23,400, may test 23,550 on any rebound

Market Today

The Nifty index started the week on a negative note and ended below 23,400 in the rangebound session on February 3 amid weak global cues and selling across the sectors barring IT, pharma and consumer durables.

Amid weak global cues, Nifty opened lower near 23,300 and with extended selling the index went closer to 23,200, intraday. However, buying at lower levels helped the index to close near the day's high at 23,361.05, down 121.10 points or 0.52 percent.

Biggest Nifty losers were L&T, ONGC, Bharat Electronics, Tata Consumers and Coal India, while gainers included Bajaj Finance, M&M, Wipro, Shriram Finance, Bajaj Finserv.

Broader indices underperform the main indices with Nifty Midcap index shed nearly 1 percent, while smallcap index declined 2 percent.

On the sectoral front, except Consumer Durables (up 0.5 percent) and IT (up 0.7 percent), all other sectoral indices ended lower with capital goods index down 4 percent, energy, metal, oil & gas, power, PSU indices down 2-3 percent each.

"The Indian stock market faced some heat today, due to the borrowed pessimism cues (tariff-related trade war). After a slow start, the markets recovered but however ended with a loss of 121.10 points at 23,361.05. NBFC, IT, and some Auto stocks performed well, while the Energy sector took a big hit. The Metal sector dropped more than 1.5%, making it one of the weakest performers," said Aditya Gaggar Director of Progressive Shares.

"The disparity was seen in the Broader Markets where significant recovery was seen in the Midcaps while Smallcaps ended at the lows. On the positive side, the market held support of 21DMA i.e. 23,280, which suggests that there’s still potential for a rebound. If the recovery continues, the market could rise to around 23,550," he added.

The Bank Nifty index also remained under pressure throughout the session as it broke below 49,000, intraday and extended the losing streak on the second consecutive session as it ended at 49,210.55, down 0.6 percent, amid some recovery from day's low.

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