Indian equity benchmarks NSE Nifty 50 and BSE Sensex extended losses on Friday. Sensex lost over 1,100 points or nearly two percent to touch day's low of 59,088. Nifty 50 breached the 17,600 mark for the first time since October 21, 2022. At the last count, Nifty 50 was trading 1.6 percent lower at 17,600.9.

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37 of the 50 stocks in the Nifty 50 basket were trading with losses. Adani Twins were the top index losers followed by banks (ICICI and SBI). Bajaj Auto, Tata Motors, Dr Reddy's and ITC were trading in the green, outperform an otherwise weak trading session.

All Adani stocks remained under pressure with Adani Ports, Adani Green and Adani Total down 20 percent each. Ambuja Cement sheds 20 percent, slipping below its offer price of Rs 385/share.

Another significant mover in the session was Dixon Tech. The shares of the company fell 19 percent following weak December quarter earnings and FY 23 revenue guidance cut.

Nifty Bank, on Friday, sheds more than 1,200 points to hit intraday low of 40,191.2. The Midcap index fell more than two percent. All sectoral indices except Nifty Pharma, Nifty FMCG and Nifty Auto were trading in the red.

"The markets are coming to very important medium term support level of 17,428. And that's the last fuels of hope for the bull. If the market were to print 17,428 then there are no bullish options left for the markets, except to go below the June low of 15,000 odds and that's the medium term outlook," explained Jai Bala of Cashthechaos.com.

"For a short term perspective, the IVs for the markets are quite low, if you look at the derivative markets. We could see extreme short term bounces come through, but they're very clearly on a sell on rise markets and these short term bounces are likely to be very fleeting," Bala said.

On the pocket that might outperform, Bala said that it will be IT. "And in IT, I like Persistent Systems and Coforge, and HCL Tech to an extent. HCL Tech to a lot less, but the order in IT is this Persistent first, then Coforge, then HCL Tech." He suggest going for cash. "If you go to cash, now, you will be having the same portfolio and a few months down the line, you'll also have a lot more cash and the same portfolio. It is not too late to go to cash even now. Use the bounces to exit."

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First Published:Jan 27, 2023 1:21 PM IST