Nifty declined for the fourth consecutive week - HDFC Securities

Views on Market Performance: Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities

Nifty fell for the second day, dropping 0.3%, or 64 points to 19301. The index dropped to the lowest closing level since June 30. China Evergrande Group filed for Chapter 15 bankruptcy protection in New York late Thursday and that marred sentiments for equities around the globe.

Our markets attempted a smart recovery mid-session, where nifty surged 120 points intraday from the lows but that flourish did not sustain and eventually nifty closed lower for the day. Trading was volatile as index gyrated wildly throughout the session.

Infosys contributed the most to the index decline, while Hero MotoCorp had the largest percentage drop falling by 2.1%. Nifty IT index ended down 1.47% at 30604 today. FMCG & PSU banks were among sectoral gainers. With this week's fall, Nifty has declined for the fourth consecutive weeks.

Nifty Small cap Index underperformed the benchmark Index where it fell by 0.53% as against Nifty fall of 0.28%. Declining shares outnumbered the advancing shares as advance decline ratio stood at 0.73 on BSE.

NSE Cash market volumes were lower as compared to recent average. There is a possibility of down side breakout of the immediate support of 19250 levels and the Nifty could slide down to another base area of 19100-19000 levels in the near term. Recent swing high of 19482 is expected to act as a short-term resistance for the Nifty.