What happened with the Share Market Today

Ahead of US inflation data today and fear of further aggressive rate hikes from central banks, the benchmark of Sensex fell nearly 400 points dragged by banking, financial, and IT stocks. Besides, sustained foreign capital outflows and a sell-off in global equities also weighed on investor sentiments.  On the domestic front, September inflation spiked to a 5-month high, and August IIP fell to an 18-month low having a negative impact on the market.

In the global markets, the Asian market declined half percent and overnight US market fell to a 2-year low after Producers Price Index (PPI) rose in September by more than expected and policymakers expressed concerns over the persistence of high inflation in the minutes of meetings which have a negative impact in the market. European recovered smartly from the intra-day low today and US Dow Future soared half percent.

Sensex ended 390 points lower or 0.7% at 57,235. Nifty, ended at 17,014, down 109 points or 0.6% against the previous day’s close. Wipro was the biggest loser in the Nifty stocks followed by Adani Port, SBI, L&T, ICICI Bank, and HDFC Bank. However, HCL Tech, Sun Pharma, Coal India, and Tata Motor are among the major gainers. India Vix gained slightly to close at above 20

Tech stocks declined after Wipro announced poor Q2 reported strong Q2 results. Wipro nosedived 7% to close at Rs379 amid 4.2cr shares traded on NSE. However, HCL Tech surged by 3% to close at Rs982 after the company reported impressive Q2 results. Tech Major Infosys declined 1% to close at Rs1420 ahead of Q2 results today in the post-market. Both LTI and LTTS slipped 1% each.

Banking stocks declined as a concern of higher Inflation may RBI to hike interest rates. SBI slipped over 2% to close at Rs521. Bank of Baroda, ICICI Bank, HDFC Bank, PNB, and Axis Bank slipped between 1-2%. NBFC stocks like Bajaj Finance, Bajaj Finserv, and M&M Finance slipped 1-2%

Metal stocks witnessed mixed bag. Aluminum major Hindalco, Nalco, and Vedanta witnessed fresh buying after the news that the Biden administration is weighing restricting imports of Russian aluminum as it charts possible responses to Moscow’s military escalation in Ukraine. However, SAIL, Tata Steel, and Jindal Steel declined marginally.

Technical Outlook:

Nifty index opened negative and slipped to 16950 zones in the first half of the session. However, it witnessed recovery in the latter half but gave up its gains in the last hour and closed near 17000 zones with losses of around 110 points. It formed a Bearish candle on a daily scale and has been making lower highs from the last five sessions signaling capped upside. Now, it has to hold multiple support of 16950 zones, for a bounce towards 17117 and 17171 zones whereas supports are placed at 16950 and 16888 zones.