Sensex slips 186 pts amid profit booking; banks, metals fall; pharma gains
HSBC said on Tuesday that the valuation of Indian stock market has become a concern now after a sharp run up from their March 2020 low
 "MARKET LIVE: Sensex, Nifty at day's low; financials among top drags")
Stock market updates: Investors booked profits in cyclical stocks as growing concerns about new coronavirus outbreaks in Asian countries, undercutting an economic recovery, worried investors. Besides, valuation concerns regarding Indian equities flagged by global agency HSBC and economic growth concerns raised by S&P, in the wake of the second wave of Covid-19 pandemic, added to investor woes.
In their Asian outlook conference for the second half of 2021, brokerage firm HSBC said on Tuesday that the valuation of Indian stock market has become a concern now after a sharp run up from their March 2020 low. It maintains a 'neutral' rating on Indian equities and opines that the government’s latest stimulus measures announced Monday are marginally positive. However, relative to the economic dislocation seen in India, the package is not very large, it believes. READ MORE
S&P, meanwhile, cut India's FY22 GDP growth forecast to 9.5 per cent from 11 per cent predicted earlier and said that permanent damage to private and public sector balance sheets will constrain growth over the next couple of years. READ MORE
Against this backdrop, the frontline S&P BSE Sensex ended the day at 52,549.6 levels, down 186 points or 0.35 per cent while the broader 50-share Nifty closed at 15,748 levels, down 66 points or 0.42 per cent.
PowerGrid, HUL, Nestle India, Cipla, Divis Labs, and IndusInd Bank eked out gains of up to 2 per cent to end the day as the top Nifty gainers. On the flipside, ONGC, Indian Oil Corporation, Hindalco, Kotak Bank, ICICI Bank, and Bajaj Auto declined in the range of 1.6 per cent to 2.5 per cent to settle as top laggards.
The broader markets too reversed their gains with the BSE MidCap and SmallCap indices closing 0.42 per cent and 0.07 per cent lower, respectively amid losses in Oil India, SJVN, NHPC, Adani Transmission, Vodafone Idea, IFCI, Srei Infra, and Gujarat Mineral Development Corporation.
From a sectoral viewpoint, the Nifty Bank, Auto, Metal, and PSB index slipped between 1 per cent and 1.5 per cent on the NSE while the Nifty Pharma and FMCG indices advanced 0.5 per cent each.
Global markets
Global shares inched back from record highs on Tuesday on emerging Covid-19 variants across the globe, while investors remained on edge over the United States’ exit from accommodative policy.
European stocks, as measured by the pan-European STOXX 600 index, were up 0.4 per cent, helped by a jump in industrial, financial and mining stocks, sectors set to benefit from economic improvements.
In contrast, MSCI's broadest index of Asia-Pacific shares outside Japan was 0.5 per cent lower as recent positive momentum stalled as some countries re-imposed lockdowns to contain the spread of the Delta variant of the virus.
Japan’s Nikkei fell 0.8 per cent, while in Australia the ASX/200 index closed down 0.1 per cent. Chinese stocks lost 0.92 per cent as investors booked profits after a rally on the back of the country’s strong rebound from the impact of the COVID-19 pandemic.
(With inputs from Reuters)
5:22 PM
MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking
The rise in cases of a new COVID variant has started weighing on the sentiment globally and it may cascade to our markets too. Having said that, the bias is still positive however the participation is now restricted to a handful of the index majors. We thus suggest limiting naked leveraged positions in the current scenario and waiting for further clarity. On the benchmark front, Nifty has immediate support at 15,650 and the banking index may find the cushion within the 34500-34800 zone
5:05 PM
TECH VIEW :: The short term trend of Nifty is weak with choppy movement
The short term trend of Nifty is weak with choppy movement. The absence of sharp selling interest from the new highs in the last couple of sessions could signal a chances of halting of this decline and emergence of upside bounce in the next 1-2 sessions. Important supports to be watched around 15670-15600 levels.
Views by: Nagaraj Shetti, Technical Research Analyst at HDFC Securities
Views by: Nagaraj Shetti, Technical Research Analyst at HDFC Securities
4:50 PM
MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities
Indian benchmark indices ended lower for the second consecutive session on June 29. Nifty opened flat, made an attempt to rise in the first few minutes of trade but failed. It fell gradually through the day to end near the day’s low. At close the Nifty was down 66.20 points or 0.42% at 15,748.50.
The Nifty fell for the second consecutive session with negative advance decline ratio. Weak Asian markets contributed to the negative sentiments. Volumes have however not expanded on falls suggesting that a larger downmove has not begun. 15674-15792 could be the band for the Nifty in the near term.
4:34 PM
MARKET OUTLOOK :: Technical charts suggest profit-booking in near-term
Technically, the Nifty index has faced resistance at Upper Bollinger Band formation that suggests some profit booking for the near term. Moreover, the index has also confirmed the Bearish Marabozu Candlestick on the daily chart, which indicates further correction for the upcoming session.
Furthermore, the index has given closing below 21 HMA, which is also slightly negative. In addition, a momentum indicator RSI (14) & MACD also indicated negative crossover on the daily timeframe. At present, the nifty seems to have resistance at 15,900 levels while immediate support comes at 15,650.
Views by: Sumeet Bagadia, Executive Director at Choice Broking
Furthermore, the index has given closing below 21 HMA, which is also slightly negative. In addition, a momentum indicator RSI (14) & MACD also indicated negative crossover on the daily timeframe. At present, the nifty seems to have resistance at 15,900 levels while immediate support comes at 15,650.
Views by: Sumeet Bagadia, Executive Director at Choice Broking
4:22 PM
Trading Strategy :: Keep a final stop loss at 15,600/52,100 on Nifty/Sensex
The market remained in a narrow range but with a negative bias. Weakness in the Asian markets, consistent selling pressure from FIIs since the last three days, and steadiness in the prices of Brent crude at 75 could be the few reasons to keep the market within the trading range.
The market failed at 15,900/52,900 levels, which is an upward boundary for the market, and weakness from the same could result in gradual weakness towards 15,670/52,300 that is the lower boundary of the trading range. Coincidently, 20 days EMA is also placed at the same levels that should act as a reversal point for the market.
Today, we witnessed weakness in financials, metals, and auto companies, which is an indication of buying breadth is poor. The activity was more into FMCG and Pharmaceutical stocks.
As the market is in the trading range, we need to be buyer between 15,720/52,450 and 15,670/52,300 levels. Keep a final stop loss at 15,600/52,100 levels
Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market failed at 15,900/52,900 levels, which is an upward boundary for the market, and weakness from the same could result in gradual weakness towards 15,670/52,300 that is the lower boundary of the trading range. Coincidently, 20 days EMA is also placed at the same levels that should act as a reversal point for the market.
Today, we witnessed weakness in financials, metals, and auto companies, which is an indication of buying breadth is poor. The activity was more into FMCG and Pharmaceutical stocks.
As the market is in the trading range, we need to be buyer between 15,720/52,450 and 15,670/52,300 levels. Keep a final stop loss at 15,600/52,100 levels
Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
4:11 PM
MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services
Despite the government’s stimulus package to revive stressed sectors, domestic equities continued to trade weak due to new coronavirus outbreaks in Asia. Extension of emergency credit guarantee scheme to MSME’s and subsidised financing to small borrowers will be a boost to the Microfinance and NBFC sectors. Amid a broad-based selling in the market, the healthcare sector managed to remain positive due to the extended government support
3:56 PM
TECH VIEW :: Any break below 15,670 will lead to further sell-off
>> Nifty forms bearish candle for the second consecutive day.
>> On hourly chart, Nifty has formed a small "double top" pattern with a neckline support around 15,670 zone
>> Any break below this levels can lead to further sell-off
>> Resistance is near 15,800-15,900 zone
Views by: Rohit Singre, Senior Technical Analyst at LKP Securities
>> On hourly chart, Nifty has formed a small "double top" pattern with a neckline support around 15,670 zone
>> Any break below this levels can lead to further sell-off
>> Resistance is near 15,800-15,900 zone
Views by: Rohit Singre, Senior Technical Analyst at LKP Securities
3:53 PM
BSE Snapshot :: Despite overall weakness, gainers outweigh losers
3:51 PM
NSE Snapshot :: Top Nifty50 gainers of the day
3:50 PM
Financials remain top laggards on the Sensex today
3:48 PM
BSE SmallCap index dips 0.07%
3:47 PM
BSE MidCap index underperforms, slips 0.4%
3:45 PM
Sectoral trends on the NSE
3:43 PM
Sensex Heatmap
Top gainers: PowerGrid, HUL, NTPC
Top losers: Kotak Bank, ICICI Bank, Tech M
Top losers: Kotak Bank, ICICI Bank, Tech M
3:35 PM
CLOSING BELL
The fronline S&P BSE Sensex ended the day at 52,549.6 levels, down 186 points or 0.35 per cent while the broader 50-share Nifty closed at 15,748 levels, down 66 points or 0.42 per cent.
Topics : MARKET LIVE Markets BSE Sensex Nifty50 MARKET WRAP
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First Published: Jun 29 2021 | 8:07 AM IST