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Saturday, January 28, 2023

Taking Stock | Market takes a breather after rising for 8 days; Sensex slips 415 pts, Nifty below 18,700

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The Indian equity market snapped an eight-day gaining streak and stalled the record run of Sensex and Nifty on December 2, amid weak global cues and across-the-board selling barring metal, PSU bank and realty stocks.

At Close, the Sensex was down 415.69 points or 0.66% at 62,868.50, and the Nifty was down 116.40 points or 0.62% at 18,696.10.

However, for the week, BSE Sensex and Nifty rose 1 percent each.

Amid weak Asian markets and mixed close of the US markets in the overnight trade, the Indian market started on a negative note and extended the selling as the day progressed. However, buying at lower levels helped trim some of the day’s losses.

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Stocks and sectors

Eicher Motors, M&M, Tata Consumer Products, HUL and Hero MotoCorp were among the top Nifty losers. The gainers were Apollo Hospitals, Grasim Industries, Tech Mahindra, Tata Steel and Dr Reddy’s Laboratories.

On the sectoral front, except Nifty PSU banks and metal, all other sectoral indices ended in the red with the Nifty auto index slipping 1 percent and the energy index falling 0.5 percent.

The BSE midcap and smallcap index rose 0.7-0.8 percent.

On the BSE, auto and metal indices shed 1 percent each, while metal and realty indices added 0.5 percent each.

Among individual stocks, a volume spike of more than 300 percent was seen in Sun TV Network, United Breweries and BHEL.

A long build-up was seen in BHEL, Mahindra & Mahindra Financial Services and Aditya Birla Capital, while short build-up was seen in Eicher Motors, Mahindra and Mahindra and Tata Consumer Products.

More than 100 stocks touched their 52-week high on the BSE, including United Breweries, BHEL, Bank of India, Raymond, L&T Finance Holdings, Jyothy Labs, Dish TV Network and Britannia Industries.

Outlook for December 5

Ajit Mishra, VP – Technical Research, Religare Broking

Markets witnessed profit-taking and lost over half a percent, taking a breather after the recent surge. After the flat start, the Nifty index gradually inched lower in the first half, followed by range-bound movement till the end. Consequently, the Nifty index settled at 18,695; down by 0.62%.

Meanwhile, sectoral pack traded mixed wherein realty and metal counters were in the limelight while auto and energy traded subdued. Amid all, the buoyancy on the broader front kept the traders busy till the end.

Indications are in the favour of further consolidation in the index but the tone would remain positive till Nifty upholds 18,300. And, since all the sectors are participating in the move, traders should utilize this phase to add quality names on dips.

Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities:

As the market was in an overbought zone after the recent upsurge, correction was due for sometime and hence investors booked profit in a trading session marked by weak Asian and European cues.The recent GDP numbers and GST collections came in line with expectations, but global newsflow will continue to dictate the market trend going ahead.

The two immediate triggers – RBI’s credit policy next week and the US Fed meeting in mid December on rate front would determine the investors’ mood in the near term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own, not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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