Ajit Mishra, VP – Research, Religie Broking:
The market fell sharply lower and lost more than 2.6%, suppressed by weak global cues. Destruction in the US market, for fear of an aggressive increase in interest rates, shakes investors and triggers a weak early. The situation deteriorated further because of heavy sales in the cross -sector index department where it was and the metal department was among the top losers.
As a result, nifty ends near the low day to be closed at 15,800. A broader index is also traded in synchronization with benchmarks and disappears in the range of 2.5-3%.
This fall shows that the bear is in control because Nifty has fully reversed this new profit and re -reaches closer to the lowest March. And, indications of the global index, especially the US market refer to further decline. Traders must align their position.
Shrikant Chouhan, Head of Equity Research (Retail), Securities Box:
The cruelty in other Asian indexes and European gauges triggered massively selling actions in local equity because Sensex & Nifty ended below their important psychological levels of 53K & 16K each. Investors are anxious about the risk of stagflation and federal reserve attitudes that are more hawkish to control inflation by choosing more interest rates, which will have a greater impact on the economy that occurs ahead. Until when FII remains a clean seller, the southern bound trip will be difficult to turn.
In addition, the opening of the post Gap Down, Nifty has formed a bearish candle which shows further weaknesses of the current level.
At present, the index is traded near the 15700-15750 support level, therefore a fast pullback rally is not ruled out if the index successfully trading above 15700.
For traders, as long as the index is traded below 15900, the correction wave is likely to continue and underneath it can re -test the 15700 level. On the further side, the index can slip to 15600. On the other hand, above 15900, nifty can move up to 16000 -16100
Vinod Nair, Head of Research in Geojit Financial Services:
This new income reported by US retailers reflects the heat of high retail inflation, which results in defeat on Wall Street.
Persistent demolition by foreign investors along with increasing concerns about the economic slowdown in bringing disaster in the domestic market.
In this very unstable market, investors can focus on sectors such as FMCG, Pharma, capital goods and manufacturing whose assessments are moderate and reasonable in the long run.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty fell towards the previous low swing at the back of the initial gap. The trend has changed negatively because nifty drops below 16000.
Direct support was seen in 15671; Under 15671 further correction to 15400 looks possible. At a higher end, resistance is placed at 16000.
Gaurang somaiya, forex & bullion analyst, motilal oswal financial services:
Rupees consolidate in a narrow range despite selling sharply in domestic and global equity. The dollar is too pulled back from a higher level after the amount of the economy released from the US comes below estimates. The housing number released from the US yesterday came under estimates.
On the other hand, Yen Japan rose after a safe purchase as an uncertainty about increasing inflation. Today’s focus is on the Fed Philly manufacturing index to measure the dollar. We expect usdinr to trade with positive bias and quote around 77.20 and
Close Market: Indian benchmark index ended lower for successive sessions on May 19 with good finishing near the 15,800 level.
Near, Sensex fell 1,416.30 points or 2.61% at 52,792.23, and nifty fell 430.90 points or 2.65% at 15,809.40. Around 838 shares have advanced, 2413 shares have declined, and 122 shares have not changed.
Wipro, HCL Technologies, TCS, Tech Mahindra and Infosys are one of the good losers, while Gainers including ITC, Dr. Reddy Laboratory and Power Grid Corporation.
All sectoral indexes ended in red with metal, the index dropped 4-5 percent.
The BSE Midcap and Smallcap index each loses more than 2 percent.