Mumbai: Bears remain at the helm as Nifty on Thursday slipped below the 19,000-mark for the first time in four months, indicating a rising bearish condition, said Rupak De, Senior Technical Analyst at LKP Securities.
While Nifty closed 281 points down at 18,841, Sensex fell 900 pts to close 63,148.
The bearish crossover in the momentum indicator also supports the negative momentum. In the current scenario, supports are appearing very fragile and vulnerable. Despite the recent sharp decline, further correction from the current level seems highly possible.
Support on the lower end is visible at 18,600-18,645, while resistance is positioned at 18,950-19,000, De said.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said the short-term trend of Nifty continues to be negative. Having moved into oversold region, there is a chances of upside bounce occurring from the lows. A decisive move below 18800 levels could open next downside of 18500-18600 levels in the near term.
Shares of fertiliser companies have declined after the government slashed subsidies for the upcoming Rabi season, said Deepak Jasani, Head of Retail Research at HDFC Securities.
On Wednesday, the government approved a Rs 22,303 crore nutrient-based fertiliser subsidy. The revised subsidy rates for nitrogen have been reduced 39%, while those for phosphorus fertilisers have been cut 49 per cent, potassium fertiliser subsidies have seen a 85 per cent cut, driven by falling input prices, he said.
The Nifty Metal and Nifty Auto were the top beaten down sectors, down by 1.62 per cent and 1.59 per cent, respectively, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
Axis Bank, HCL Technologies, Adani Ports, IndusInd Bank, and ITC were the top gainers on the Nifty, while the biggest losers were M&M, Bajaj Finance, Asian Paints, UPL, and Bajaj Finserv.
(IANS)
