Bears make a comeback on D-Street as markets slip over 1%. Here's what investors should do on Friday

Bears made a comeback on D-Street on Thursday, reminding investors of last Friday’s fall. Weak global cues triggered a gap-down start for the Indian equity markets today and it was followed by volatile swings through the trading session.

A sharp rise in 10-year US treasury yield made investors jittery. Notably, volatility index soared over 6% indicating some uneasiness at these levels.

Both the benchmark indices settled with over 1% cuts on Thursday.

At close, the NSE Nifty 50 index closed down 1.08% at 15,080, while the S&P BSE Sensex settled nearly 600 points lower at 50,846. However, midcap and small-cap indices ended in green today and outperformed benchmarks

Sectorally, the Nifty Auto index fell over 0.44% to close at 10,625. Following the trend, the Nifty IT index fell by 0.55%, Nifty FMCG, too, lost 0.03% and Nifty Pharma declined 0.22%.

Overall it was the banks, financials and metal stocks which dragged the indices.

Here’s what experts investors must do on Friday

Shrikant Chouhan, Executive Vice-President, Equity Technical Research at Kotak Securities

We again witnessed sharp decline in our market mainly due to the sudden jump in the long term bond yields of the US. We think, soon it will be normal for the market and then the market can react normally. The steady growth in the economy leads to a steady rise in the bond yields and therefore the market should start offering discounts in the medium to long term.

Technically, the market recovered from lower levels but due to the pressure of the weekly expiration of index contracts the Nifty/Sensex came back from the highs of 15,200/51,260.

On Friday, 15,050/50,750 and 14,950/50,400 levels will be decisive for the market. The Nifty/Sensex could fall to 14,850/50,100 or 14,750/49,800 on a decisive dismissal of 14,950/50,400. On the upside, the 15,250/51,300 level would be a big hurdle for the index.

Rohit Singre, Senior Technical Analyst at LKP Securities:

Index opened a with a gap down on weak global cues though we saw some bounce but again in the second half we witnessed profit booking and index closed a day at 15,080 with loss of one per cent and formed a bearish candle on the daily chart.

Going forwards index has one good support at 15k mark, if managed to hold above that then some pullback otherwise more profit booking can be seen, on the higher side 15,150-15,200 zone will be stiff hurdle.