Indian equities failed to continue their fine touch of 2017 into the first day of 2018, as benchmark indices logged losses in fag-end trading today in what was a board-based selloff. The Nifty50 index closed 95.15 points or -0.90 per cent down at 10,435.55 today, while the 30-share Sensex settled 244.08 points or -0.72 per cent down at 33,812.75 today. As many as 127 stocks hit fresh 52-week highs on NSE, compared with 10 stocks that hit fresh 52-week lows.
The benchmark indices fell sharply amid sell off on the first day of the new year led by losses in banks, IT and auto stocks. Volatility was expected to rise in stocks in 2018. But a strong selloff on the very first day of the New Year took many traders by surprise, as cues were scanty with most global markets closed for the day. The benchmark Nifty50 remained range bound throughout the day, but saw a sharp decline in the last hour of the trade. Tomorrow we may see some lower volumes as well, as the participation in the market will remain affected due New Year holidays.
The Nifty50 made a large bear candle today, following a late selloff that pulled the index down below its five-day moving average at close, wiping out the price movement of last seven sessions. Traders, however, respected the index's 13-day moving average around the day's low of 10,423. Any follow-through selling in the next session shall confirm the short-term reversal. The index could be heading to much lower levels with initial targets placed around the 10,250 mark. As long as the index trades below the 10,550 level, the bears will try to be in a commanding position.