The Indian equity indices closed on a negative note for the second trading session on May 29. The Nifty 50 closed 183 points or 0.80% lower at 22,704.70. Similarly, the BSE Sensex settled down 667.55 points or 0.89% lower at 74,503. Bank, financial services, and IT stocks were the major draggers. HDFC Life Insurance, SBI Life Insurance, ICICI Bank, Tata Consumer Products, and Tech Mahindra were the major losers in the Nifty 50 on May 29.
Sectoral indices lower
The Nifty Midcap 100 dipped 169 points or 0.32% to settle at 52,125.75. Nifty Bank closed 640.80 points or 1.30% at 48,501.35. In the broader market, smallcap and midcap stocks closed in the red.
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“Markets continued their corrective trend for another session, losing over half a percent. After an initial drop, Nifty fluctuated within a range and ultimately closed near the day’s low,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
Nifty’s Technical Side
“During the day, heavy call writing activities were seen at the 23,000 and 22,800 strikes, while put writing activities were visible at the 22,800 and 22,700 strikes. The option data suggests that Nifty might expire around 22,800. On the other hand, a fall below 22,700 might trigger additional selling pressure in the market. Immediate resistance is placed at 22,800,” said Rupak De, Senior Technical Analyst at LKP Securities.
Bank Nifty
“Bank Nifty was the one which contributed most to the fall today. HDFC Bank and ICICI Bank were the major contributors to the fall today. Crucial support for the bank Nifty is placed at 48300 – 48250 which coincides with the 20-day moving average and the 61.82% Fibonacci retracement level. Overall, both indices have reached crucial Fibonacci retracement levels, and we expect a recovery to resume over the next few trading sessions,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
