Snapping the two-day winning trend, the domestic equity market closed with a slight loss in profit booking on Wednesday. The broader Nity50 and Sensex fell 0.12% and 0.20%, respectively, as the 50-share index closed below 16,250 and the latter closed near 54,200. Following the benchmark, the Nifty Mid Cap and Small Cap closed down 0.2% and 0.4%, respectively.
Meanwhile, FMCG, pharma and healthcare rose 1.25% as they prevented the market from slipping further. In addition to these sectors, all Nifty sectoral indices closed in red with the biggest hit of Realty and PSU Bank.
“In support of pharma and FMCG stocks, there was a steady race in the domestic market until the weak opening in the European market. Services Research 8
With interest rates likely to rise by global central banks, investors are advised that the sectors are least affected by protectionist policies, Nair suggests.
According to Gaurab Ratnaparkhi, Head of Technical Research, Sharekhan, BNP Paribas, the short-term pull was still intact and the Nifty could attract interest buying near 16,200.
“The Nifty opened on a positive note and tried to continue with a positive momentum. On the upside, however, it stumbled to 16,400 where it attracted some lucrative bookings,” Gaurav said.
The internal structure of the recent upswing shows that today’s negative close is a short break and short-term pullbacks are still intact, he said.
Ratnaparkhi was of the opinion that the index is expected to witness new buying support around 16200. “Thus, this small degree of decline can be taken as a new buying opportunity from a short-term business perspective. On the upside, the short-term target is pegged at 16500. The 16000 level will serve as a support for the short term,” he suggested.
Rupak Dey, senior technical analyst at LKP Securities, said the Nifty found resistance at significant resistance at 16400 and went down, closing with a slight loss.
On the daily chart, the index is below the short-term moving average, he said.
“The daily RSI is in a bullish crossover. The trend is likely to be bearish in the near term. Resistance at the upper end is set at 16400. At the lower end, support is visible at 16000,” added Rupak Dey.
FIIs, meanwhile, continued their sell-off as they sold equity worth Rs 2,192.44 crore in the Indian market on Tuesday. Also, they were net sellers so far in the month with sales figures of Rs 36,682.40 as of May 17.