Tracking SGX Nifty trends and taking indications from Asian markets, domestic equity benchmarks fell nearly 1% in Thursday’s opening trade. The broader Nifty fell below the 16,000-mark and the Sensex plunged nearly 600 points. The two indices opened at 16,021.10 and 53,608.35, respectively, only slipping further after opening.
In the broader market, Nifty midcap and small cap each fell more than 1% as India crossed the VIX 23-mark.
In the pre-open, the Sensex fell more than 600 points or more than 1% as Nestl ইন্ড India gained, one stock remained unchanged and the rest of the 30-share index slipped red.
“Although the Nifty has broken the lows of the last three sessions, it has managed a smart pull-back after approaching the psychological 16,000-mark,” said Biraj Bass, technical and derivatives analyst at Ashika Broking.
Looking at the intraday recovery and short-term risk-reward slant, there is a possibility of a pull-back to the 16,400-16,600-zone, which adds near-term resistance, when support is seen at 15,800-16,000, he added.
Meanwhile, on Thursday, Asian markets declined in early trade as the Japanese Nikkei fell 225 0.9%, the Hang Seng Index fell 1% on the Hong Kong Exchange and the Chinese Shanghai Composite fell 0.3% at 8.30am.
The SGX Nifty signaled another weak opening for the Indian market as the futures index on the Singapore Exchange fell more than 150 points in its first trade on Thursday.
On Wednesday, fear of inflation forced the US market to close in red. US equity benchmark Dow Jones slipped more than 300 points to its 15-month low, while Nasdaq fell nearly 400 points to its 18-month low. Similarly, the S&P 500 declined 66 points, or 1.65%.