Mumbai: The market was trading at 17,027 till 12 noon, down 81 points from its morning low of 16,946. Intraday recovery took the index above the 200-day simple moving average (SMA) of 16,980.
A decisive break below the 200 SMA is considered bearish, leading to a tussle between the bulls and the bears. The Nifty has tumbled over 1,000 points from its mid-September high of 18,096, turning FIIs net sellers of shares worth $0.9 billion after buying $7 billion in the past two months.
The turmoil in global currency markets has rocked equity markets with the US Fed raising rates by 75 bps for the third time since September 2021, with FIIs panicking to protect US bonds in a risk-averse sentiment .
“We see 16,980 and 17,100 as key pivots for the day. Opening trade today near 17,100 will improve confidence in a breach of 17,170, setting up a run up of 17,350,” said Anand James, chief market strategist at Geojit Financial Services.
“Alternatively, an inability to swim above 16,980 would increase the chances towards a 16,00 dip. This outcome is less favorable, despite a sharp return to Friday’s closing time.”
Top 5 beneficiaries include ONGC, up 4% 132, Cipla and Divi’s Lab, over 2% each as of writing. Eicher Motors, Maruti and Kotak Bank are among the top 5 index losers, down between 1.8% and 2.6%.
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