Market Watch: Nifty support lies at 21,500, Nifty Bank critical support at 45,000

Foreign Institutional Investors on Thursday sold shares worth Rs 4,933 crore in the cash markets. On the other hand, flows from DIIs remained positive as they added shares worth Rs 5,522 crore.

The US markets ended largely flat overnight amid lack of any fresh triggers. Back home, both Sensex and Nifty ended the session with sharp cuts post the RBI MPC announcement amid lack of any positives on the liquidity front even when the rates and stance were maintained. The Sensex ended lower by 723.57 points at 71,428, while the Nifty ended 212.55 points lower at 21,717.95.

Rate-sensitive sectors ended in red after RBI maintained the status quo for the sixth consecutive time and did not provide any time frame for an interest rate cut. After the hawkish tone of RBI, we expect the market to remain sideways and consolidate in the near term,”said Siddhartha Khemka of Motilal Oswal Financial Services.

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On the technical front, Sheersham Gupta, Technical Analyst at Rupeezy, said “21,500 has become a very crucial level for the bulls to defend as there also lies the 61.8 percent Fibonacci retracement level. A slide below this level can bring sharp correction in Nifty. Whereas, RBI’s concern regarding the extra liquidity elicited a sharp downmove in Nifty Bank. With 45,000 emerging as a critical support level, coinciding with its 200-day moving average, a dip below this mark will land Nifty Bank in the bearish territory.”

Foreign Institutional Investors on Thursday sold shares worth Rs 4,933 crore in the cash markets. On the other hand, flows from DIIs remained positive as they added shares worth Rs 5,522 crore, provisional data from exchanges showed.

Top stocks to watch today are LIC, Biocon, United Breweries, Suryoday Small Finance Bank, BHEL.