Nifty50 Prediction, Nifty50 Chart: Domestic equity indices erased morning gains as markets turned tailspin amid a bearish trend in the global markets in the backdrop of the Federal Reserve's rate-hike decision.
Despite a rally in the opening session on Thursday, Sensex and Nifty both ended in red for the fifth consecutive day. The BSE benchmark plummeted 1,045.60 points or 1.99 per cent to settle at 51,495.79. Similarly, the NSE Nifty plunged 331.55 points or 2.11 per cent to close at 15,360.60.
Markets at fresh 52-week low
The benchmark indices also touched new 52-week fresh low during today's session as Nifty50 dropped to 15,335.10 and Sensex 51,425.48.
From the Nifty50 pack, barring Britannia and Nestle India, all the other stocks ended in the red. All the sectoral indices also finished in red. Nifty Metal was the top laggard in today's session, crashing more than 5%. Tata Steel, Hindalco (falling more than 6% each), Tata Motors, ONC, and Coal India were the biggest laggards.
From the Sensex pack, Tata Steel, Tech Mahindra, IndusInd Bank, Wipro, Bharti Airtel, Bajaj Finance, Kotak Mahindra Bank and NTPC were top losers. Nestle India was the only gainer. As many as 2,754 stocks declined, while 620 advanced and 100 remained unchanged. All the BSE sectoral indices also ended lower, with metal cracking 5.48%.
Investors lose big
Investors lost Rs 5.54 lakh crore in today's session, with the market capitalisation of all BSE-listed firms standing at Rs 2,39,20,631.65 crore
Ravi Singhal, vice chairman, GCL Securities, said that the early gains were led by an in-line Fed Reserve policy announced last night. But it was dampened as recessionary fears haunted the sentiments following a massive 75 bps hike in the benchmark lending rate. Notably, stock exchanges in the US ended with sharp gains in the overnight session.
Singhal said that the Nifty is looking weak and it may fall to 15,000 soon. "Nifty still looks weak for this month, for the target of 15,200-15,000 in the coming week. 15200/15000 are the next important support. We can see some relief rally from these levels. But if it fails to sustain these levels, then the gate opens for 14,400-14,300," he said.
Manoj Dalmia, founder and director, Proficient Equities, said that Nifty has breached major support of 15,500 today.
"NIfty might stay in the range of 15,000 - 15,700 in the coming days. If the selling pressure continues, as per technical supports and analysis, 14,200 could be possible," he said.
According to National Securities Depository Limited (NSDL) data, foreign institutional investors (FIIs) have sold nearly 80% of the holdings they had purchased since the pandemic triggered a freefall in stock prices in 2020. They have offloaded shares of more than Rs 3.25 lakh core since October 2021.
Notably, Nifty50 has corrected more than 17% from its all-time high of 18,604 in October 2021.