What happened with the Share Market Today

Equity benchmark Sensex declined over 800 points from the intra-day high in a highly volatile session and fell seven trading sessions ahead of RBI credit policy to announce tomorrow. During the September F&O series expiry day, Sensex opened nearly 400 points higher and went on to hit a high of 57,166 during the day while it has fallen to a low of 56314 in the mid-session on account of global market volatility. Sensex finally settled 188 points or 0.30 percent lower at 56,410. Nifty gave up its early gains to close 40  points or 0.24 percent lower at 16,818 while touching an intra-day low at 16788 and a high of 17026. Tech, auto, metal, and financial stocks declined from the intra-day high while pharma stocks recorded a smart gain.

The market was unable to sustain higher levels due to European equities opening on a weak note and US Dow Future slipped over 300 points. Moreover, there was a cautious approach in the domestic bourses ahead of RBI monetary policy decision scheduled to be announced tomorrow and continued FIIs selling. However, overnight US and European markets gained after the Bank of England’s surprise announcement of ‘QE’. 10-year US Treasury yield dropped toward 3.73% after piercing 4% earlier. The yield on 30-year UK gilts plummeted more than one percentage point.

Tech stocks declined from the intra-day high as concern over global growth dampen sentiments. Nifty declined a quarter percent while the Nifty IT Index slipped 1%. World largest phone maker Apple slipped over 1% yesterday after the news that the company cuts back on iPhone 14 production as demand falls in the US market. The company is planning to reduce production by as many as 6 million units according to a Bloomberg report. Indian tech players like LTI, Tech Mahindra, Wipro, Coforge, and TCS, declined between 1-3%.

Pharma stocks continued on a northbound journey due to attractive valuation and bargain hunting. Nifty Pharma Index gained over 1% and soared nearly 3% in the last two days. Zydus Life gained 4% to close at Rs383. Torrent Pharma, Natco Pharma, Dr. Reddy, Ipca Labs, and Granules India gained 2-3%.

Banking stocks were volatile ahead of RBI policy to announce tomorrow while the 10-Year G-Sec Yield ended flat at 7.33%. Kotak Bank slipped 2% to close at Rs1765. ICICI Bank, SBI, and HDFC Bank declined marginally. However, AU Bank AND Bandhan Bank surged by 3% each. NBFC majors, Bajaj Finance and Bajaj Finserv slipped 1% each.

Technical Outlook:
The nifty index opened positive near 17000 zones but failed to sustain and gave up at higher zones. It slipped below its previous day’s low and touched an intraday low of 16788 and closed with losses of 15 points. It formed a Bearish candle on a daily scale and has been making lower highs – lower lows over the last seven trading sessions. Now, till it remains below 16888 zones, weakness may be seen towards 16666 and 16500 zones whereas hurdles are placed at 17071 and 17166 zones.