What happened with the market today

Equity benchmark Sensex ended 125 points lower after scaling a fresh record peak of 59,737 in early trade, as investors booked profits at higher levels. After gyrating 866 points during the day, the Sensex settled 125 points or 0.20 percent lower at 59,016. Similarly, the broader Nifty slipped 44 points or 0.25 percent to 17,585. It touched a lifetime high of 17,793 intra-day. Kotak Bank was the top gainer in the Nifty pack, rising over 5 percent, followed by Bharti Airtel, HDFC Bank, Maruti, Axis Bank, and Nestle India. On the other hand, Tata Steel, SBI, TCS, and Reliance Industries were among the laggards. Metal, FMCG, mid-cap, small-cap, and Real Estate stocks witnessed profit booking. However, select private banks and auto stocks gained.

After closer to Sensex 60k, there was profit booking in the market ahead of the outcome of the GST Council meeting today. On the other hand, the FTSE and MSCI rebalancing flow today kept market intra-day volatility. Undertone bullish sentiment in the market on account of continued reform measures by the government, favorable macro data, and FIIs buying interest. Among the global market, both Asian and European markets gained as investors turned to risk assets on bets economic growth will continue.

Among the major Index, the metal and realty Index slipped over 2%. Nifty IT, Pharma, FMCG Index declined 0.5% to 1%. Nifty mid-cap and small-cap Index fell 1% each after intra-day touched record high. Nifty PSU Bank Index witnessed the biggest losers today. PSU Bank Index slipped 3% while Nifty private bank index gained 0.3%. India Vix gained 5% to close at 15.82.

PSU Bank witnessed profit booking while the government said it will offer an Rs30600cr ($4.2 billion) five-year sovereign guarantee to its new bad bank, in an attempt to clean up one of the world’s biggest piles of bad loans. PSU Bank major, SBI slipped 2% to close at Rs454. Bank of Baroda declined 4% to close at Rs82. PNB, Bank of India, Union Bank, IOB, Union Bank, and Canara Bank declined 2-4%.

Private bank major Kotak Bank climbed up 5% to close at a 6-month high of Rs2008 amid a hefty volume of 1.5cr share traded on NSE. Kotak Mahindra Group Acquires Vehicle Financing Portfolio of Volkswagen Finance and Kotak will gain access to more than 30,000 customers with a total loan outstanding of about Rs 1,340 crore HDFC Bank gained over 1% to close at Rs1582.

Metal stocks witnessed profit booking on account of a fall in metal price globally. Tata Steel slipped 4% to close at Rs1386. Hindalco, JSW Steel, Jindal Steel, SAIL, NMDC, and Vedanta declined by 1-4%. Auto stocks like Hero Motocorp gained marginally to close at Rs 2932. The company increased the price of motorcycles and scooters by up to Rs3000. TVS Motor gained half percent to close at Rs547 after the news that the company forays into the personal e-mobility business with a majority stake in European e-bike brand EGO Movement. Maruti and Eicher Motor gained 1% each.

Tech stocks like TCS slipped 2% to close at Rs3828. Both Infosys and Wipro declined marginally on account of profit booking. However, Tata Elxsi climbed up by 5% to close to a record high of Rs5460. Realty stocks like DLF slipped 2% to close at Rs335. Brigade, Prestige, and Indiabulls Realestate declined 4% each.

Technical Outlook:

The Nifty index opened positive and glided upwards to 17792 during the first half of the day. However, the profit-booking decline was witnessed in the market and it fell down to 17537 levels. It respected its previous day’s low and closed with losses of around 45 points. It formed a Bearish candle on the daily scale but still has been forming higher highs – higher lows from the last four sessions. It made a Bullish candle on the weekly scale and is forming higher highs from the last seven weeks. Now it has to continue to hold above 17600 zones to extend the move towards 17777 then 18000 zones while on the downside support can be seen at 17500 and 17350 levels.

The views and investment tips expressed by experts on kunjcapital.com are their own and not those of the website or its management. Kunjcapital.com advises users to check with certified experts before making any investment decisions. *Services related to Advisory on Kunjcapital.com are not running by kunjcapital.com and they are proposed services, Sebi Registration Awaited.