The bears continued their dominance on the Dalal Street, with Nifty index extending the fall for the fifth consecutive session on December 20, falling below 200-DMA level of 23,826 amid selling across the sectors and weak global cues.
Amid mixed global cues, the index opened flat with negative bias and extended the fall in the first half. However, it failed to hold the mid-session recovery and witnessed extended profit booking as the day progressed to fall below 23,550, before closing at 23,587.50, down 364.2 points or 1.52 percent.
For the week, the index declined 4.76 percent.
Biggest Nifty losers included Trent, Tech Mahindra, M&M, IndusInd Bank, Axis Bank, while gainers are Dr Reddy's Labs, Nestle India, HDFC Life, ICICI Bank.
All the sectoral indices ended in the red with Nifty realty index shed 4 percent, auto, IT, energy, metal, PSU bank down 2 percent each.
The Nifty midcap 100 index shed nearly 3 percent and smallcap index declined over 2 percent.
"Markets experienced a sharp decline on Friday, shedding nearly one and a half percent as the corrective phase persisted. After a choppy start, the Nifty index steadily weakened throughout the day, breaching the critical support of its long-term moving average, the 200 DEMA. Selling pressure was evident across sectors, with realty, IT, and auto taking the hardest hits. Broader indices were also significantly impacted, registering losses between 2.2% and 3%," said Ajit Mishra – SVP, Research, Religare Broking.
"As anticipated, declines in IT and banking heavyweights are adding to the market pressure, signaling potential challenges ahead. The November low around the 23,250 zone now emerges as the next key support, while the 23,850-24,000 range serves as a resistance zone for any recovery attempts. Traders should adjust their positions accordingly, maintaining a strong focus on risk management," he added.
After the weak start, the Bank Nifty index managed to recover but failed to cling onto gains and ended at 50,759.20, down 1.58 percent. The index fell more than 1,000 points from the day's high of 51,629.
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