- By Aditya Pratap Singh
- Fri, 03 May 2024 03:58 PM (IST)
- Source:JND
Stock Market: Equity benchmark indices took a dramatic U-turn during Friday's intraday trade as key index heavyweights such as Reliance Industries, HDFC Bank, and Larsen and Toubro faced selling pressure. The S&P BSE Sensex was close to its peak as it touched an all-time high of 75,095 during the trade hours. The Sensex's previous high was 75,124. The BSE benchmark then lost its gains and touched a low of 73,831, down 1,264 points from the day's high.
Meanwhile, At 3:30 p.m., both domestic indices ended the day's trade in the red. The BSE's Sensex closed at 73,878.15, down 732.96 points, or 0.98 percent. While, the NSE's Nifty 50 ended trade at 22,475.85, down 172.35 points, or 0.76 percent.
Its counterpart, the NSE benchmark index, Nifty 50 hit a new all-time high of 22,795, before falling 340 points to a low of 22,455 in intraday trading.
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key factors behind today's fall
Profit booking – Benchmark indices had climbed to record highs, with the Sensex and the Nifty gaining more than 4.5 percent from their recent lows in the previous two weeks. As the market was trading in the green for the majority of this week's session, the heavy selling pressure to book profits can be a significant reason behind today's fall.
Chart – Nifty is facing persistent resistance around its super trend line, which stands at 22,740. The index will have to overcome this hurdle to jump higher. On the downside, Nifty's immediate support is seen at its 20-DMA (Daily Moving Average) at 22,455, followed by 50-DMA at 22,300 levels.
FII – After a pause in March, foreign institutional investors were net sellers of shares worth Rs 35,700 crore. FIIs sold shares worth a net of Rs 964 crore in the first trading session of May.
Following the recent US Fed meeting, the anticipated interest rate cut has been postponed to November this year. Experts believe that foreign investors may prefer to sell trades for now as interest rates remain high for an extended period and bond yields are elevated.
