What Happened with Market Today

The market fell two consecutive days and equity benchmarks Sensex nosedived nearly 500 points to close below the 18300 mark on account of profit booking There was selling across the broad-based market. Both Sensex and Nifty gave up initial gains despite strength across global markets in a volatile session. Losses in oil and gas, financial services, consumer goods, and metals pulled the market lower. However, PSU bank and telecom stocks gained. Broader markets were extremely volatile and slipped deep into the red again.

At close, the Sensex was down 456 points or 0.74% at 61,260, and Nifty was down 152 points or 0.8% at 18,267. About 877 stocks advanced, 2351 declined, and 115 shares were unchanged. Hindalco, Hindustan Unilever, Titan, BPCL, L&T, ONGC, and Coal India were among the major losers in the Nifty stocks. However, Bharti Airtel, SBI, Tata Motor, and Axis Bank ended green.

All the sectoral indices ended in red except PSU Banks posted a smart gain. Nifty declined 1% in the last two trading sessions but broader markets like auto, metal, pharma, FMCG, Energy, mid-cap, and small-cap Index fell 2-5%. Traders were booking profit in the market after a relentless buying in the last few sessions. Rising oil prices and local fund selling are also concerns in the market. Domestic Fund were net sellers of nearly Rs7700 cr in the last six trading sessions. The Indian economy in its current shape presents a picture of rapid recovery on all fronts like 5-month low inflation, 4-month high factory growth, quarterly results, and favorable government policy implementation. Among the global markets, both Asian and European markets gained fuelled by strong earnings, while investors kept tabs on comments from the Federal Reserve as it prepares to bring an end to its vast financial support Programme.

In today’s market, Nifty IT Energy, FMCG, Pharma Index fell 1% each. The Nifty metal and realty Index declined 2% each. Nifty Mid-cap and Small-cap Index slipped nearly 2.5% each. Both Nifty mid and small-cap Index slipped 4% in the last two trading sessions. However, the Nifty PSU Bank Index gained 1.5%. India Vix surged over 5% to 18.31.

The market slipped 14% to close at Rs2956 after announcing Q2 results. Mid-cap major IRCTC nosedived 18% to close at Rs4435. It has declined 26% in the last two trading sessions. Rallis India, Bajaj Electric, PI Industries, Gujarat Alkalies, Siemens, and SRF slipped 4-8%.

Among the FMCG stocks, Jubilant Foods slipped 8% to close at Rs3965 while the company reported impressive Q2 results. Hindustan Unilever shed 3% to close at Rs2478 while the company reported in line with expected quarterly results. Metal stocks like Hindalco slipped 4% to close at Rs513 on account of profit booking. Nalco, SAIL, and Vedanta declined 3-4%.

Auto stocks like Escorts, Eicher, Ashok Leyland, and Hero Motor declined 2-3% while Tata Motor managed to end in the positive territory. It has gained 1% to close at Rs486 while touching an intraday low of Rs471. Tech stocks witnessed a mixed bag. L&T Infotech gained 1% to close at Rs6960 after the company reported impressive Q2 results. Tech major TCS, Infosys, and Wipro declined 1% each on account of profit booking. However, Tech Mahindra, HCL Tech, and Mindtree gained marginally.

Banking stocks like PSU Bank, SBI surged 2% to close at Rs500. Bank of Baroda climbed up 3% to close at Rs92. Union Bank advanced 5% to close at Rs48. Private banks and NBFC like Kotak Bank, HDFC Bank, M&M Finance declined marginally. Telecom stocks like Bharti Airtel gained 4% to close at Rs708 and Vodafone Idea gained 6% to close at Rs10.50

Technical Outlook:

The nifty index opened flat to positive but failed to surpass 18450 zones and broke its immediate support levels. Bears took over the index and it fell sharply towards 18200 zones to finally close with losses of around 150 points. It formed a Bearish candle on a daily scale and started to form lower highs on the daily scale. Now till it remains below 18450 levels, weakness could be seen towards 18150 and 18050 levels whereas resistance exists at 18450 and 18600 zones.

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