The NSE’s 50-share Nifty can retest its recent lows of 10,050 if the Nifty Bank index breaks 24,000, market expert Mitessh Thakkar said.
The markets witnessed a volatile session on Thursday. Though opened in green, the markets failed to sustain recovery. Nifty Bank lost 0.47%, closing at 24,141 points.
NSE’s 50-share Nifty closed just above 10,100 at 10,114 points, while BSE’s Sensex closed at 33,001 points, down 130 points. Midcaps underperformed as the index closed with a one percent cut.
Bank of America Merrill Lynch’s Sanjay Mookim, on the constant negative market performance by PSUs, said that there is need to see a resolution to the current issues before seeing some upside on PSU banks.
Global cues gave mixed signals on Thursday. Singaporean market index, SGX Nifty, opened in the green sighting positive signals for the Indian markets, however, the U.S. Fed policy rate hike by 0.25% lent a hand in keeping the markets volatile.
The U.S. markets continue to show weak performance after the rate hike. The S&P 500 index skidded 2.5% to 2,643.69. The Dow Jones industrial average sank 2.9% to 23,957.89. The Nasdaq composite gave up 2.4% to 7,166.68.
In addition to the rate hike, President Donald Trump set in motion tariffs on as much as $60 billion in Chinese imports to the U.S. . In response to this, China unveiled a list of U.S. goods which they may impose a higher import duty on.
Post the trade war announcement, Hong Kong’s Hang Seng lost 3.4% to 30,001.57 and the Shanghai Composite in China sank 2.9% to 3,169.19. Australia’s S&P/ASX 200 skidded 1.9% to 5,824.50.
Japan’s benchmark Nikkei 225 index plunged 3.8% to 20,765.74 when their markets opened on Friday
The SGX Nifty, however, slipped over 1% on Friday’s opening. The trades are below 10,000 as against Nifty March Futures close on Thursday of 10,127, indicating a negative opening for the Indian market.
(With inputs from AP)