Nifty closes below 8000, wait for weekly closing to form a directional view: Experts

Stock markets upheld their negative tone for the seventh consecutive session and shed nearly a percent on Thursday. Feeble cues from Asian markets were weighing on sentiments in early trade, which further deteriorated with a slide in select index majors as the day progressed.

Besides, participants were maintaining cautious approach ahead of the beginning of the two-day GST Council meet. Most sectoral indices ended lower in line with benchmark, wherein metal and PSU banks lost the maximum. The Nifty eventually closed with a cut of a percent at 7979.

Commenting on the market, Sameet Chavan-Chief Analyst-Technical & Derivatives, Angel Broking, said, “Our recent strategy of going long with a stop loss below 8056 did not work well. But we would still avoid going short in the market and rather look for reversal signs to create longs in the market. The important reason behind this view is the formation of ‘Dragonfly Doji’ formed during the antepenultimate week. Hence, we do not expect any major downside from current levels.”

Experts believe that tomorrow’s session would be quite crucial for the market as we would get the weekly closing, which may dictate the near-term direction for the market. For the coming session, 8046 level would be seen as an important resistance; whereas, 7964 – 7952 are likely to act as intraday supports.

Jayant Manglik, President, Retail Distribution, Religare Securities Ltd, said, “The Nifty slipped below the psychological mark of 8000 on Thursday and cues from the banking space are pointing towards further decline ahead. So, we suggest avoiding fresh long trades in the index and advice keeping shorts as hedge to existing longs.”

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)