Sensex falls 732 points on profit booking
The BSE Sensex on Friday fell 732 points to close at 73,878 due to profit booking by investors
image for illustrative purpose
New Delhi, May 3: The BSE Sensex on Friday fell 732 points to close at 73,878 due to profit booking by investors.
Vinod Nair, Head of Research, Geojit Financial Services said profit booking and a degree of caution ahead of the release of the US non-farm payroll resulted in selling pressure in the market.
"However, the absence of significant negative surprises in Q4 earnings thus far, along with a decline in oil prices, might help to mitigate the downside," he said.
Though the correction was broad-based, the large-cap stock was the key underperformer due to the moderation of FII's exposure to the domestic market, he said.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said the Nifty index is showing signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market. On the downside, the index has immediate support at 22,300, and a breach below this level could accelerate the downside momentum.
Mayank Mehraa, smallcase Manager and Principal Partner at Craving Alpha, said that Friday's correction could aid bullish investors by providing liquidity for a potential rally next week. These swift corrections prevent complacency, fostering a more sustainable bull run.
