Benchmark indices NSE Nifty 50 and BSE Sensex trimmed some losses but ended Monday’s session broadly in red. The NSE Nifty 50 fell 121.15 points or 0.68% to 17,706.85 and BSE Sensex tanked 520.25 points or 0.86% to 59,910.75. In sectoral indices, Bank Nifty rose 130 points or 0.31% to 42,262.55, while Nifty IT plunged 1,334.6 points or 4.71% to 27,008.20. The top gainers on Nifty 50 were Nestle India, Power Grid, State Bank of India, Britannia and Coal India while the top losers were Infosys, Tech Mahindra, HCL Tech, Larsen & Toubro and NTPC.
“The market responded negatively to the weak start of the earnings season by IT bellwether and their cautious outlook. On the global front, the US 10-year bond yield rose as solid US job data raised concerns over further rate hikes by the Fed. The earnings reports, primarily from the IT and banking sectors, will influence market trends in the coming days. We expect Nifty50 earnings to grow by 10% in Q4 FY23, driven by banking and finance, auto, telecom, and FMCG,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Currently Nifty is witnessing selling pressure from higher levels. Once it sustained 17865 levels we can expect a rally till 18000-18080 levels. However Nifty formed a bearish Engulfing pattern in the daily chart would be short-term concerning,” said Om Mehra, Equity Research Analyst at Choice Broking.
Bank Nifty support near 41600, resistance at 42800
“Bank Nifty has support at the 41600 zone while resistance is placed at 42800. The long-term investor may opt for selective mid-cap and small-cap stocks in addition to large-cap, which currently look appealing,” said Om Mehra, Equity Research Analyst at Choice Broking.