What Happened with Market Today

Equity benchmark Index tumbled over 300 points following losses in index heavyweights Reliance Industries, Infosys, and TCS amid a negative trend in global markets. The market declined for the third consecutive day, dragged by losses in information technology, metals, energy, and telecom stocks.

Sensex index shed336 points or 0.55% to close at 60,923. Nifty declined by a similar magnitude down 88 points or 0.5% to close at 18,178. Both the benchmarks slipped as much as 1% in intraday trade. Asian Paints was the top loser in the Sensex pack, tanking around 5 percent, followed by Reliance Industries, Infosys, Tata Steel, TCS, and Dr Reddy’s. On the other hand, Kotak Bank, HDFC, ICICI Bank, and NTPC were among the gainers. However, there was stock-specific action in the market. Bank Nifty witnessed the biggest gainer today and surged by 1.5% to close to a record high of 40050 led by Kotak Bank, Axis Bank, and ICICI Bank. PSU Bank Index has also climbed up by 2.5%.

Sentiment has been dampened on account of weakness in the global markets, continued local fund selling, and rising oil prices. Moreover, traders were profit booking after a relentless buying in the last few sessions. DIIs were net sellers over Rs7500cr in the last six trading sessions. Among the global markets, both Asian and European markets declined as a concern of inflation risks and the outlook for China’s property sector

Among the major Indexes, Nifty IT Index slipped 2.5%, Nifty Auto Index gained over half percent led by Tata Motor. The nifty Metal index slipped 2%, Nifty FMCG Index declined 1% after poor quarterly results announced by Asian Paints. Nifty mid-cap and small-cap Index fell half percent each. India Vix declined 2% to close at 17.94.

Banking stocks witnessed fresh buying. Kotak Bank climbed up over 6% to close to a record high of 2144 amid 95 lakh shares traded on NSE. ICICI Bank gained 1% to close at Rs755 and RBL Bank surged by 4% to close at Rs196. PSU Banks like Bank of Baroda gained 3% to close at Rs96. Indian Bank, PNB, and Union Bank gained 3-6%.

Among the Tech stocks like LTTS slipped 4% to close at Rs4745 and LTI declined 4% to close at 6652. MindTree, Infosys, HCL Tech, TCS declined 2-4%. FMCG stocks witnessed profit booking after Asian Paints announced lower than expected Q2 results. The stock declined nearly 5% to close at Rs3008. Other paint majors, Berger Paints shed 6% to close at Rs751. Hindustan Unilever declined 1% to close at Rs2448.

Metal stocks witnessed profit booking due to a fall in metal prices globally. Industrial commodities including copper and iron ore slid as high energy costs threaten global growth and on headwinds for China’s economy. Prices reversed early gains, with copper dropping back below $10,000 a ton, iron ore tumbling as much as 8.7%, and aluminum also declining. Tata Steel slipped 2% to close at Rs1317. Vedanta, Hindalco, NMDC, and SAIL declined by 1-2%.

Auto stocks witnessed fresh buying. Auto major, Tata Motor advanced 5% to close at Rs509. Escorts, TVS Motor, and Eicher Motor gained 1-22%.
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Technical Outlook:

The Nifty index opened positive but failed to hold 18350 zones and nosedived to 18048 levels. It formed a Bearish candle on a daily scale with longer lower shadow and is forming lower lows from the last three sessions. However, it witnessed a recovery of around 100 points from lower levels but finally closed the day with losses of around 90 points. Now it has to cross and hold above 18250 levels, to witness an up move towards 18350 and 18450 zones while on the downside support exists at 18050 and 17947 marks.

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