Sensex’s Losing Run Extends; Negative Bias Indicated for Nifty Bank & Key Levels

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Sensex’s Losing Run Extends; Negative Bias Indicated for Nifty Bank & Key Levels

By Malvika Gurung -- The sell-off continued on Dalal Street as the domestic equity market closed lower for the sixth consecutive session on Wednesday amid elevating US Treasury bond yields and weakness persisting across global markets as concerns grew over the US Fed’s aggressive monetary tightening.

The equity benchmarks Nifty50 ended 0.87% lower and Sensex declined 509.24 points or 0.89%, the indices falling to fresh two-month lows on Wednesday.

Over the past six days, the 30-scrip index has lost a total of 3,121.5 points, while the Nifty has slipped from the 17,000 mark. Further, investors on Dalal Street have lost nearly 15 lakh crore of their wealth in the period.

Banking, financial and metal stocks led the losses on Dalal Street today, while pharmaceutical and IT companies are gaining investor traction, thanks to a weakening rupee.

The Indian rupee fell to a new closing low of 81.9 against the USD on Wednesday, after recording its weakest level earlier in the session.

All the financial and banking indices under the Nifty umbrella collapsed in the day, with Nifty PSU Bank tumbling 2.07%, while Nifty Bank fell 1.56%.

Nifty Bank has witnessed continuous selling pressure and closed below the support of 38,000. This indicates further bearishness in the near term, states Kunal Shah of LKP Securities.

“The index remains in a sell-on-rise mode with multiple hurdles at 38,500-39,000 where fresh call writing has been observed. The next crucial support on the downside is placed at 36,000 which coincides with its 200 DMA,” Shah adds.

Read Also: In Focus - Major Factors Driving D-Street’s Slump Today Amid Bearish Sentiments

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