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Bulls vs Bears: Here's what to expect on Dalal Street today

Bulls vs Bears: Here's what to expect on Dalal Street today

Sensex fell 652 pts to 59,646 and Nifty lost 198 pts to 17,758 in the previous session.

What to expect on Dalal Street today What to expect on Dalal Street today

The Indian market snapped its eight-session winning streak on Friday amid profit-booking and weak global cues. Sensex fell 652 points to 59,646 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 the red.  Market breadth was negative with 1,427 stocks ending higher against 1,981 stocks falling on BSE. 120 shares were unchanged. 

Market cap of BSE-listed firms fell to Rs 277.77 lakh crore today.  

Here's a look at what analysts said about the direction the market is likely to take today.  
 
Rupak De, Senior Technical Analyst at LKP Securities
 
“The index has found support at the falling trend line. In the near term, the trend is likely to remain sideways to negative. However, a fall below 17,700 may trigger a serious correction in the market. Support on the lower end is visible at 17,500/17,400. On the higher end, resistance is visible at 17,900-18,000." 

Joseph Thomas, Head of Research, Emkay Wealth Management  

"Some moderation in the inflation rate in the US as well as in India generated expectations of a likely moderation in central bank polices as well. The Dollar Index too moved down towards the 104.50 level, sustaining the impression that rates could be lower. But the subsequent data points, as well as the fact that the level of inflation was too high, that rate hikes would be required more often to bring it down to the target levels, also led to the Dollar Index moving up to 107.50, and probably set to move higher still. The market levels and the action reflected a response to these developments during the day. These factors regarding the potential for rates to move up may put some pressure on the markets in the coming week." 

Palak Kothari, Senior Technical Analyst, Choice Broking 

"The support for Nifty has shifted around 17,600 levels while on the upside 18,000 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38,500 levels while resistance at 40,000 levels. Overall, the index has formed a big red candle which suggests profit booking can continue for upcoming sessions breaching below 17,600 level can show more downside till 17,300 levels.” 

Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd
 
“In addition, it has also formed Hammer candlestick formation indicating further weakness in the near future. Below 17,900, the correction formation is likely to continue and could retest the level of 17,600-17,500. On the flip side, 17,900 – 17,950 would act as an immediate hurdle for the bulls. Fresh uptrend is possible only if the index clears the resistance of 17,950, which could then take it further to 18,050-18,150 levels.”

Also read: Weekly market wrap: Nifty, Sensex gained for the fifth week in a row despite the losses on Friday

Published on: Aug 22, 2022, 7:24 AM IST
Posted by: anwesha madhukalya, Aug 22, 2022, 7:19 AM IST