Sensex ends 549 pts down at 49,035; HCL Tech declines 4%; Tata Motors up 7%

Stock market updates: India VIX ticked up 5 per cent

4:36 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound action with high volatility in the last couple of sessions, Nifty shifted into a sharp weakness on Friday and closed the day lower by 161 points. Nifty opened on a positive note, slipped into further weakness in the early mid part of the session amidst a range movement. The weakness got intensified in the mid to later part of the session and Nifty finally closed with minor upside recovery note.

 

A long negative candle was formed with minor lower shadow. Technically, this pattern could indicate profit booking from the highs. Friday's weakness was resulted in Nifty to rest on an immediate support of 10 day EMA at 14350.

 

We had anticipated the chances of one day drop as per symmetrical pattern of 16-18 sessions (after the last drop of 21st Dec). Friday's sharp one day drop came after the consumption of 17 sessions post last one day drop. Previously, in many occasions Nifty witnessed upside bounces after one day sharp declines. Having declined steeply on Friday, the odds of upside bounce back is high in the market by next week.

Nifty as per weekly timeframe chart, formed a small negative candle with upper and lower shadow. Technically, this pattern could indicate a formation of doji pattern at the new all time highs (14653). Normally, a formation of doji after a reasonable upmove could signal warning for trend reversal. But, few such doji patterns have been formed in the last 9-10 weeks and the market continued its upside momentum since then.

 

Conclusion: The sharp decline of Friday seems to be a one day drop in the market as per the symmetrical chart pattern of daily and we expect Nifty to show upside bounce to retest the new high of 14653 in the next week. On the flip side, a sharp follow-through weakness in the next 1-2 sessions is expected to negate this pattern. Immediate support is placed at 14350

4:07 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian Benchmark equity indices ended lower on the back of profit booking on Jan 15 amid weak global cues. The Nifty kept falling since opening with small bounces in between and made a bottom at 1415 Hrs. A late feeble recovery ensued. At close the Nifty was down 161.90 points or 1.11% at 14,433.70. Nifty closed the week with a gain of 0.6%.

 

Volumes on the NSE were higher than the previous session. Among sectors, all of them ended in the red with IT, PSU Bank and Pharma falling the most. Advance decline ratio was severely negative.

The Nifty has given the first signs of reversing after a steep rise. Advance decline ratio has also raised concerns over the last few days of possibility of a formation of a short term top. 14563-14256 are the resistance/supports for the Nifty in the near term

4:01 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed profit booking and following the global trends. Market continues to resist 14600 and has taken a dip at 14360. If the market closes below the levels of 14380, we might see a correction till the levels of 14180-14200. The momentum indicators like RSI, MACD indicating a small correction in the markets.

4:00 PM

MARKET CLOSING COMMENT :: S Ranganathan, Head of Research at LKP Securities

Markets began circumspect amidst weak job data in the US even as Joe Biden unveiled details of the $1.9 trillion rescue package. Friday's afternoon trade saw profit taking in IT stocks despite the biggies putting out positive commentary with large deal wins as MCAP to GDP crossed 100% leading to volatility

3:59 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

The market opened flat with a negative bias and weak start of European market led to further bleeding with all sectors in the red zone. The $1.9 trillion ‘American Rescue Plan’ failed to uplift the sentiment of the western market. Investors can resort to profit booking as the near future trend of the market will depend on budget expectations, stock wise Q3 result and foreign inflows

3:58 PM

Market stats :: Market breadth favours bears

3:53 PM

PSU Bank index snaps 3-day winning streak

3:52 PM

BSE MidCap underperforms frontline index :: Voda Idea jumps 11%, HAL, BEL tumble 4%

3:48 PM

Sensex contributors :: RIL, HDFC duo, HUL, IT stocks drag index

3:47 PM

Trends on NSE :: All the sectoral indices end in the red

3:45 PM

Sensex Heatmap :: 26 of the 30 index constituents trading in the red

3:35 PM

CLOSING BELL

Sensex ended in the sea of red with 26 of the 30 constituents ending the day in the red. Tech Mahindra (down 4 per cent) was the top loser on the index, followed by losses in ONGC, HCL Tech, Asian Paints, Ultratech Cement, HUL, and NTPC, down between 2 per cent and 3.7 per cent. The index closed at 49,035 levels, down 549.5 points or 1.11 per cent.

 

On NSE, the Nifty50 index slipped below the 14,500-mark and settled at 14,433 levels, down 162 points or 1.11 per cent lower. 

3:30 PM

MSTC hits record high on heavy volumes; zooms 61% in thus far in January

Shares of MSTC hit a record high of Rs 263.65, soaring 20 per cent on the BSE on Friday, in an otherwise weak market on the back of heavy volumes.
 

Trading volumes on the counter more-than-doubled with a combined 2.9 million equity shares, representing 4.1 per cent of total equity of MSTC, changing hands on the NSE and BSE till 03:18 pm. In comparison, the S&P BSE Sensex was down 1.1 per cent at 49,037 levels. READ MORE

3:21 PM

Nifty IT index slips over 2%

3:14 PM

BUZZING :: IDFC First Bank advances over 4% in a weak market

3:04 PM

New rules for H-1B visa mild negative for Indian IT services: ICRA

The proposed changes in H-1B application selection process by US Citizenship and Immigration Services (USCIS) are prospective in nature but will have a minor adverse impact on the margins of Indian IT services companies, investment information agency ICRA has said.

 

The H-1B application selection process will be based on wage levels compared to an earlier selection method based on lottery. Under the new rule, the USCIS will select applications offering the highest wages proffered vis-a-vis selected occupation level or position to attract the highest skilled labour. READ MORE

2:55 PM

SECTOR WATCH :: Barring BSE Telecom, all sectors in the red

- BSE Telecom index trades 3 per cent higher
- Bharti Airtel, Voda Idea top contributors & gainers

2:50 PM

These stocks defy market mood, rally up to 20%

2:48 PM

Share sales gather pace as mkt turns buoyant, valuations hit lifetime highs

Equity share sales are gathering pace underpinned by buoyancy in the secondary market with valuations hovering around lifetime highs. On Thursday, Indigo Paints, which is among India’s top five paint companies, announced its Rs 1,170-crore initial public offering (IPO). READ MORE

2:38 PM

PVR gains 2% on better-than-expected Q3 nos

2:36 PM

Gail dips 7% from day's high as board approves buyback, interim dividend

The board also declared an interim dividend of Rs 2.50 per share or 25 per cent for the financial year 2020-21 (FY21). The company said it has fixed January 28, 2021 as the record date for the purpose of determining the eligibility of shareholders for buyback of equity shares well as for payment of interim dividend. READ MORE

2:27 PM

HDFC, RIL, Infosys drag Sensex

2:26 PM

Tata Motors rallies for 11th day straight, hits 28-month high; here's why

Shares of Tata Motors extended their winning run to the 11th straight day on Friday after the stock rose 7 per cent to hit a 28-month high of Rs 261.50 on the BSE in an otherwise weak market. The stock was trading at its highest level since September 2018. The stock, however, pared gains later, and was ruling 5 per cent higher on the BSE after it clarified that the company had no plans to form partnership with US-based Tesla for electric mobility. READ MORE

2:19 PM

ALERT :: Sensex plunges 700 pts

2:19 PM

MARKET UPDATE:: Sensex plunges 700 points, gives up 49k

2:15 PM

Dec Quarter Result :: PVR posts net loss of Rs 49 crore

>> Consolidated revenue at Rs 45 crore

2:04 PM

V-Guard approves acquisition of minority stake in Gegadyne Energy Labs

V-Guard Industries said its Board has approved the acquisition of a minority stake, 18.77%, in Gegadyne Energy Labs for a cash consideration of Rs 33.4 crore.

1:55 PM

NEWS ALERT :: GAIL board approves buyback worth Rs 1,046 crore

>> Board apprives buyback of not exceeding 6,97,56,641 fully paid-up equity shares of face value of Rs. 10 each (representing 1.55 % of the total number of fully paid-up equity shares) at a price of Rs 150 per equity share payable in cash for an aggregate consideration not exceeding Rs 1,046.35 crores (representing 2.50% and 2.26 % of the aggregate of the fully paid-up equity share capital and free reserves)

1:44 PM

In Fast Lane :: Tata Motors rises for 11th day in a row, up 7%

1:41 PM

OFF LOWS :: BSE Auto index wipes out losses, ekes out marginal gains