Post Market Analysis of Equity Sensex

Equity Sensex slipped over 500 points in line with global peers as a concern about fresh Covid restrictions in China and the possibility of much bigger Fed rate hikes had a negative impact on the market. Market sentiments were dampened after the US Fed gave hawkish commentary on interest rate hikes and rising China covid cases which is a  concern of a slowdown in the global economy. Moreover, the market has a cautious approach ahead of the US Fed minutes of the meeting to be announced this week. The only, positive factor in the domestic market was the fall in oil prices to a 2-month low.

Sensex opened around 200 points lower and widened losses as the trade progressed, thus, hitting the day’s low of 61,059. The index finally closed 519 points or 0.80 percent lower at 61,145. Nifty nosedived 148 points or 0.81 percent to close the session at 18,160. This was the third straight session of loss for both indices. India Vix advances 3% to close at 14.80.  Pharma, cement, IT, and select private banks were major losers today while PSU banking stocks were major gainers today. On the Nifty stocks, ONGC, Adani Ports, Hindalco, Reliance, and Tech Mahindra are among the major losers today while BPCL, Bharti Airtel, Axis Bank, and IndusInd Bank are among the major losers

Among the global markets, both Asian and European markets slipped along with US Future as investors were spooked by potential signs Chinese officials are reverting to tighter zero Covid policy and expectation of the US Fed to aggressively hike interest rates.

Tech stocks witnessed a sharp decline and the Nifty IT Index slipped by 1.5%. TCS slipped by 2% to close at Rs3283. LTI, Persistent Systems, Tech Mahindra, Infosys, and Wipro declined between 1-3%. Auto stocks like TVS Motor slipped 3% to close at Rs1048. Hero Motocorp, Tata Motor, M&M, and Ashok Leyland declined 1-2%. However, Escorts climbed up by 8% to close a record high of Rs2196 after the company guided for overall revenue to grow more than two times by FY28.

Telecom major Bharti Airtel surged 2% to a close all-time high at Rs851 after the company announced the launch of its cutting-edge 5G services in Guwahati, Assam.

Among the banking stocks, HDFC Bank slipped 1% to close at Rs1597, Bandhan Bank, Kotak Bank, and SBI fell between 1-2%. However, PSU Bank continued on a northbound journey after announcing good quarterly results, improved the balance sheet and favorable government policy boosted PSU Banks. Moreover, the Government raised the maximum tenure of PSU Banks’ MD and CEO from 5 years to 10 years which has a positive impact on PSU banks. Uco Bank climbed up by 18% to close at 1.7 amid a hefty volume of 13.7cr shares traded on NSE. PNB gained 4% to close a 52-week high at Rs48. Bank of Maharashtra, IOB, and Central Bank of India gained between 9-14%.

Technical Outlook:

The nifty index opened negative and moved southwards throughout the day. It touched an intraday low of 18133 zones and negated its higher lows formation on the weekly frame. It formed a Bearish candle on the daily frame and closed with losses of around 150 points. It has been making lower highs on a daily scale from the last three trading sessions and needs to negate the same to get any sort of stability. Now, it has to cross and hold above 18200-18250 zones, for an up move towards 18350 and then 18444 zones whereas supports are placed at 18088 and 17950 zones.