Sensex ends 372 pts lower, trims losses in late deals; Smallcaps outperform

CLOSING BELL ON MAY 17: The NSE Nifty 50 shed over 100 points to settle at 18,182. The BSE Smallcap index outperformed and ended 0.2 per cent higher.

Stock Market Highlights: The key benchmark indices extended losses for the second straight day on Wednesday as sentiment turned cautious with fears of US debt default mounting as the deadline to raise the government's borrowing limit draws near. As per reports, the US Treasury may run out of money by June 01 if the $31.4 trillion ceiling is not lifted by then.

The S&P BSE Sensex tumbled to a low of 61,340 dragged by banks and metal shares. The BSE benchmark, however, trimmed losses in late deals and eventually ended 372 points lower at 61,561. The NSE Nifty 50 hit a low of 18,115, and finally settled at 18,182 – down 105 points.

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Among the Sensex 30 shares, Asian Paints, TCS, HCL Technologies, Infosys, Tata Steel, Wipro and Bajaj Finance declined 1 – 2 per cent each. On the other hand IndusInd Bank advanced over a per cent. ITC too was up nearly a per cent ahead of March quarter results tomorrow, on May 18.

Broader indices outperformed. The BSE Midcap index was down merely 0.2 per cent, whereas the Smallcap index added 0.3 per cent. Kaynes Technology, Amber Enterprises, Precision Wires, Rane Madras, Abans Holdings, Shakti Pumps and Tanla Platforms were the major movers, up over 12 per cent each.

4:02 PM

Comment :: 'Maintain focus on stock selection, overnight risk management'

As global markets are not offering any cue, the performance of the key sectors viz. Banking, financials, auto and FMCG will continue to dictate the trend. On the index front, Nifty has crucial support at the 18050 mark, which also coincides with the short term moving average i.e. 20 EMA. Though the downside seems capped, we recommend maintaining a focus on stock selection and overnight risk management.

Views by: Ajit Mishra, VP - Technical Research, Religare Broking

4:00 PM

Tech View :: 'Support around 18,100-18,050 to cushion downfall'

The Nifty has witnessed consecutive negative days. Amid the selling pressure the Nifty has managed to hold on to the crucial support level of 18100 and the intraday pullback has come exactly from around 18100 which indicates that until the nifty manages to stay above this level the uptrend is intact. The upward sloping channel has been breached on the downside and the daily momentum indicator has a negative crossover which is a sign of weakness, and this can lead to consolidation over the next few trading sessions. On the flipside, there are multiple support parameters in the form of the 20-day moving average (18053) and the 38.2% Fibonacci retracement level (18113) of the rise from 17553 – 18459 are placed which shall provide cushion and restrict a deep correction. Stock specific action can take place over the next few trading sessions.

Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

3:58 PM

Comment :: 'Signs from US economy worrying investors'

Domestic investors remained cautious as the US market grappled with recession concerns led by recent economic data indicating slowdown. The US retail sales figures for April reflected a decrease in demand, and ongoing debt ceiling negotiations further dampened market sentiment.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

3:56 PM