What happened with the Share Market Today

Equity benchmark Sensex fell nearly 1000 points or 1.6%  to close at a 2-month low on account of weakness in the global markets and concern of the rupee depreciating to a record low amid higher FIIs selling. There was all-around selling in the market like auto, metal, cement, and banking & finance stocks. Falling for the fourth straight day, Sensex tanked 954 points or 1.65 percent to settle at 57,145. During the day, it plummeted 1,061 points or 1.8 percent to 57,038. Nifty fell 311 points or 1.80 percent to end at 17,016. Sensex slipped 2000 points in the last four trading sessions.  

Across the global market witnessed a sharp decline on account of mounting fears that the US Federal Reserve’s aggressive policy tightening could tip the economy into a recession. US Dow Jones fell to a nearly 2- year low after the US Fed’s hawkish comments last week deepened fears of a global downturn. Asian markets declined 2% as concerned of the 20-year high US Dollar Index at 114 and short-term US bond yield spiked to a multi-year high.

In the domestic market, continued FIIs selling, record high UDINR, and global market weakness have negative impacts on the market. Moreover, traders were caution approach ahead of the RBI policy meeting on 30^th September. However, there was a positive factor that the Brent crude fell to a 10-month low of $85/bbl.      

Metal stocks witnessed a sharp decline on account of base metal prices on LME like Copper, Zinc, aluminum prices fell to 6 months to 2 years low amid slower global demand. Tighter monetary policy globally, weaker economic activity in China, and Europe’s energy crisis have weighed on sentiment. Nifty meta Index slipped over 4%. Hindalco slipped 6% to close at Rs373. Tata Steel shed 4% to close at below 100. JSW Steel, Nalco, SAIL, and Jindal Steel declined 4-6%.

Auto stocks witnessed profit booking and the Nifty Auto Index fell 4%. Auto major Maruti declined 5% to close at Rs8835. The company has launched a new Grand Vitara while the premium SUV is available with prices ranging between Rs 10.45 lakh and Rs 17.05 lakh. Tata Motor nosedived 6% to close at Rs397.  

Banking and NBFC stocks witnessed profit booking ahead of the RBI policy meeting on 30^th September. 10-Year G-Sec Yield 2-month is high at 7.39%. Axis Bank slipped over 3% to close at Rs742. AU Bank declined 6% to close at Rs597. Bandhan Bank nosedived 6% to close at Rs262. HDFC Bank, SBI, ICICI Bank, and Kotak Bank declined between 1-3%. NBFC stocks like Bajaj Finance and M&M Finance fell 3% and 6% respectively.      

Beaten down tech stocks witnessed fresh buying and recovered smartly from the intra-day low. Nifty declined nearly 2% while Nifty IT Index advanced half a percent  There was a recovery in IT stocks from the intra-day low on account of the benefit of rising USDINR. USDINR spiked nearly 3% to a record high of above 81.50. Tech Major, Infosys gained 1% to close at Rs1380 while touching an intra-day low of 1355. TCS, Wipro, Mphasis, HCL Tech, and LTTS bounced back into positive territory.    

Technical Outlook:
The nifty index opened the gap down by 170 points and moved into the negative territory and breached the psychological 17000 marks in the first half of the day. It was followed by some bounce towards an immediate hurdle of 17166 then and again hit lower zones. It touched an intraday low of 16978 zones and closed with losses of around 310 points. It formed a Bearish candle on a daily scale and has been making lower highs – lower lows over the last four trading sessions. Now, till it remains below 17166 zones, weakness may be seen towards 16800 and 16666 zones whereas hurdles are placed at 17166 and 17250 zones.