The Nifty-50 broke its five-day gaining streak on Wednesday on global weakness hitting the domestic market. Disapp?o?inting Chinese econo?m?ic data and weak auto sales numbers triggered sell-offs in metal and au?to stocks on domestic bourses. The finished do?wn 363.05 points, or 1 per cent, at 35,891.52 while the Nifty lost 117.60 points, or 1.08 per cent, at 10,792.50.
All the 11 sectoral ind?ices ended in the red. The Nifty M?e??tal (-3.4 per cent) and Auto (-3.1 per cent) we?re the top losers. The Ni?fty Mid-cap and Sma?ll-cap were down 1.2 per cent and 1 per cent, res?p?ectively.
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “The Nifty was literally on the cusp of surpassing its recent hurdle of10,924. But as market surprises us most of the times, it certainly left us clueless with such kind of selloff in the broader market. However, having said that, it would be too early to call it a reversal. Technically, Nifty has managed to find support precisely at the ‘200-SMA’ on the hourly chart. Hence, going ah?e?ad, Wednesday’s low of 10,735 would now be se?en as a crucial support. On the higher side, a sustainable move beyond 10,810 would pu?sh the index back to te?st10,870–10,924 levels.
“Since, Wednesday’s correction was mainly a kn?ee-jerk reaction to se?l?loff seen in the global ma?rkets, one needs to ke???ep a close watch on how things pan out gl?o?b??ally and in case of so?me positive developm?e?n??ts, it would certainly in??fuse strength in our ma?rket to break key hurdles.”
Jayant Manglik, presid?e?nt, Religare Broking, sa?id: Post a decent upmo?ve in the last few trading sessions, the equity be?n?c?hmark indices dec?l?i?n?ed led by negative global cues and profit taking at higher levels ?There has been some encoura?ging developments on the global front with Tr?u?mp signalling meani?n?g?ful progress on trade ta?lks with China, thereby easing tensions between the two nations. However, we continue to remain cautiously opt?i??mistic on the Indian ma?????rket, as global headwi?nds in the form of ec?o?nomic slowdown wou?ld keep the market in ch?eck. Additionally, due to the lack of any dome?s?tic triggers, the market wo?uld take cues from US Fed chairman’s me?d?ia interaction schedu?l?ed this week.