The Indian equity market lost nearly 2 per cent amid high volatility, with the Sensex down 1,141.78 points, or 1.95 per cent, at 57,197.15 and the Nifty closing 303.65 points, or 1.73 per cent, lower at 17,172 in the week ended April 22.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “It was the second week of fall in the Indian equity market on the back of weak global cues, earnings disappointment from IT names, and pain in HDFC twins.
The Nifty auto index, however, added 3 percent, Nifty energy and oil & gas rose 2.4 per cent each.
If we look at the derivative data then the put-call ratio is sitting at 0.91 level whereas FIIs’ long exposure in index future stands at 47 per cent, both are heading towards the oversold zone.
Technically, Nifty has a sacrosanct support level of 16,800, below this, Nifty is vulnerable to a major fall however 16,600 is also another support level as a 61.8 per cent retracement of the previous rally.
“Traders are advised not to trade aggressively till the trend becomes clear and also, unlike the previous weeks, we are not left with any convincing idea in individual stock as well.