Equity indices snap 8-session winning streak, close in red

Equity indices snap 8-session winning streak, close in red

The Indian market snapped its eight-session winning streak on Friday amid profit-booking and weak global cues. Sensex fell to 59,646 with 652 points and Nifty lost 198 points to 17,758. Consumer durables, banking and auto shares were the top sectoral losers, with their BSE indices falling 499 points, 729 points and 431 points, respectively.

All 19 sectoral indices on the BSE ended in red. The market breadth was negative with 1,427 stocks ending higher against 1,981 stocks falling on the BSE. The shares of 120 were the same.

Here is a look at what analysts said about the direction the market is going to take today.

Rupak De, Senior Technical Analyst at LKP Securities, said he was a senior technical analyst.

The index has found support at the falling trend line. The trend is likely to remain negative in the near term. A fall below 17,700 may cause a correction in the market. Support on the lower end is visible at 17,500 17,400. The resistance is visible at 17,900 -- 18,000. There was some moderateration in the inflation rate in the US and India, as well as expectations of a moderater in central bank polices. The Dollar Index moved down to the 104.50 level, keeping the impression that rates could be lower. The subsequent data points, as well as the fact that the level of inflation was too high, led to a hike in the Dollar Index moving up to 107.50, which is likely to move higher. The market levels and action reflected a response to these developments during the day. The markets are under pressure due to the possibility of rates going up in the coming week due to these factors. Support for Nifty has shifted around 17,600 levels, while 18,000 may act as an immediate hurdle on the upside. The Bank Nifty has support at 38,500 levels and resistance at 40,000 levels. The index has formed a red candle that shows profit booking can continue for sessions below 17,600 levels, showing more downside until 17,300 levels. Amol Athawale, Deputy Vice President Technical Research, Kotak Securities Ltd.

In addition to that, it has also formed Hammer candlestick formation, indicating further weakness in the near future. The correction formation is likely to continue above 17,900 and could retest the level of 17,600 -- 17,500. On the flip side, 17,900 17,950 would be an immediate hurdle for the bulls. It is possible that the index will go further to 18,050 -- 18,150 levels only if it clears the resistance of 17,950.