Sensex, NiftyDr Reddy’s was the top Sensex gainer, up 3.35%, followed Nestle India while all other stocks were down in red.
(Image: REUTERS)

Bears dominated Dalal Street on Friday amid a global sell in equities as investors gauged the impact of a new covid-19 variant. S&P BSE Sensex nosedived 1,687.94 points or 2.87% to close at 57,107 while Nifty 50 was down 2.9% to end at 17,026. Stocks were on a Black Friday sale but analysts advised against buying the dip at this juncture while suggesting to trade with a bearish bias. Dr Reddy’s was the top Sensex gainer, up 3.35%, followed Nestle India while all other stocks were down in red. IndusInd Bank was the top laggard, down 6.2%, followed by Maruti Suzuki India, Tata Steel, and Bajaj Finance. Bank Nifty tanked 3.58% today while India VIX gained a massive 24.85%.

Nagaraj Shetti, Technical Research  Analyst, HDFC Securities –

“The market has been in a steep fall and more weakness could be in store. The downside breakout of the crucial supports and the overall negative chart pattern as per daily and weekly timeframe indicate resumption of sharp down trend in the market. The next lower targets to be watched for Nifty around 16500 levels in the next couple of weeks. Any pullback rally from here could find strong resistance around 17200 levels.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“Today’s closing has left the markets at a crucial juncture. If we break today’s low, the index can easily slide to 16400-16500. The upside now has multiple resistance levels and we are definitely in a short-medium term bear market. Any up move should be utilized to find opportunities to go short on the markets.”

Sachin Gupta, AVP, Research, Choice Broking –

“Technically, the index has continued the breakdown of the Head & Shoulder pattern after retesting the neckline, which indicates bearishness in the index. Moreover, the index has moved below 100 days SMA and also formed a Bearish Marubozu candle on the daily chart. However, the momentum indicator RSI & Stochastic has been trading at oversold territory. At present, The Nifty has support at 16700 levels while resistance at 17300 levels. On the other hand, Bank nifty has support at 334800 levels and resistance at 36600 levels.”

Vinod Nair, Head of Research at Geojit Financial Services

“Triggered by the new covid variant in South Africa, domestic markets plummeted into negative territory following weak global peers. Existing inflation fears coupled with worries of an aggressive policy tightening by the US Fed Reserve also added to today’s catastrophic session. On the domestic front, broad-based sell-off was witnessed as investors dumped covid-sensitive stocks while focus was shifted towards the pharma sector amid growing concerns over the new variant with higher mutations.”

Ajit Mishra, VP – Research, Religare Broking –

“Though the COVID is not new to the market, the reaction is largely in response to the news of a different variant while the US and Europe are already struggling. The way markets have closed on Friday, we expect more pain in the coming sessions. Apart from the global COVID-related update, markets will also be eyeing the domestic data like auto sales, GDP numbers, etc for cues. Since Nifty has slipped below the critical support zone of 17,150, the next crucial support comes at 16,700. Traders should continue with the bearish bias and use the bounce to create shorts. Investors, on the other hand, should see this as an opportunity and start accumulating quality stocks in a staggered manner.”

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