What Happened with the Market Today

Sliding for the third straight day, equity benchmark Sensex dropped 287 points amid losses in index majors Reliance Industries, Infosys, and ICICI Bank as monthly derivatives expired. Index making it the longest losing streak in two months, dragged by losses in metals, information technology, and auto stocks. After a volatile session, Sensex ended 287 points or 0.50 percent lower at 59,126. Similarly, Nifty declined 93 points or 0.50 percent to 17,618.

PowerGrid was the top loser in the Nifty pack, shedding around 3 percent, followed by Asian Paints, Axis Bank, Kotak Bank, Bajaj Auto, SBI, and M&M. On the other hand, Bajaj Finserv, Bajaj Finance, NTPC, Sun Pharma, and HUL were among the gainers.

The market was highly volatile on account of the September F&O expiry. Traders were booking in the last three trading sessions after the Sensex crossed of 60k psychological level. Moreover, rising oil price, US Bond yield nearly 3-month high, weak Asian markets, and FIIs selling dampened the market sentiment. Among the global market, European markets bounced back into positive territory as renewed optimism over the economic recovery spurred risk appetite and outweighed concerns over rising bond yields.

Among the major Index, both IT and Auto Index slipped nearly 1% each while Realty Index gained 1%. Nifty Small-cap and Mid-cap Index gained half percent each. Bank Nifty shed nearly 1%. BSE Power Index gained half percent. India Vix slipped over 2% to close at 18.40.

Among the banking stocks, Axis Bank slipped 2% to close at Rs767. ICICI Bank, Kotak Bank, and SBI fell over 1% each. However, Federal Bank gained 4% to close at Rs84 after the news that the CARE Ratings reaffirmed ‘CARE AA; Stable’ rating in respect to the bank’s ‘Basel III-Tier II Bonds’ of Rs 500 crore. PSU Bank like IOB gained 11% to close at Rs23 after the news that after the Reserve Bank of India removed the bank from the Prompt Corrective Action (PCA) framework after nearly six years.

Tech stocks like Infosys slipped 1% to close at Rs1675. Tech Mahindra, Wipro, LTTS, Mindtree, and Mphasis slipped 1-2%. Auto stocks like Maruti slipped nearly 1% to close at Rs7338 while September auto monthly sales data will announce tomorrow. Escorts, Hero Motocorp, Bajaj Auto, and M&M declined by 1-2%. However, Ashok Leyland gained 3% to close at Rs134.

Metal stocks like Hindalco slipped over 1% to close at Rs488. JSW Steel, Vedanta, Nalco, Hindustan Zinc and SAIL declined by 1-3%. Tata Steel slipped marginally to close at Rs1288. Tata Steel’s Singapore unit has sold its entire stake in NatSteel Holdings Pte to TopTip Holding Pte. for $172 million.

Realty stocks like Oberoi Realty surged 3% to close at Rs864. Brigade, Indiabulls Real, DLF, and Phoenix Mill gained 2-3%. Pharma stocks like Sun Pharma gained 1% to close at Rs818. Laurus Lab, Ipca Labs, and Cadila gained 1% each. Rising power demand and coal shortage boosted power stocks. Tata Power climbed up by 5% to close a record high of Rs159 and CESC surged 6% to close at Rs92. IEX soared over 1% to a close record high of Rs646 while touched an intraday high of Rs667.

Technical Outlook:

The nifty index opened flattish but failed to surpass 17750 zones and remained range-bound in the initial half of the session. However, it weakened during the latter part and breached its previous day’s low by heading towards key support of 17580 mars. It formed a Bearish candle on a daily scale and closed with losses of around 90 points. It has been forming lower highs from the last four sessions and resistances are gradually shifting lower. Now it has to hold multiple support of 17580 zones, for an up move towards 17777 and 17850 zones whereas support is shifting lower to 17450 and 17350 zones.

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