Closing Bell: Market ends 6-day winning streak as indices pare gains, finishing the day flat; pharma, auto drag

Taking Stock | Market Breaks 6-day Winning Streak, Ends Flat On Last Hour Profit Booking

Except Nifty bank, energy and infra, all other sectoral indices trading in the red. Auto, metal and pharma indices shed 1 percent each.... Read More

Markets ended almost unchanged in a volatile trading session, taking a breather after a strong surge. Initially, supportive global cues led to a firm start however profit-taking in the latter half trimmed all the gains. On the benchmark front, the Nifty index settled above 15,100 levels. In line with the benchmark, the broader markets too ended flat. Amongst the sectors, a mixed trend was witnessed wherein Auto, IT and Metal ended with losses and other indices like Consumer Durables, Capital Goods and Telecom managed to settle with decent gains.

We might see some consolidation in the index and it would be healthy. We thus advise using intermediate corrective moves to accumulate quality stocks on dips and avoid contrarian trades.

Today, again the market has managed to establish a new record high of 15,257/51,835, but due to profit booking it corrected sharply in the last hour of trade. Among sectors, profit booking was seen in Media, Auto and Pharma stocks whereas, witnessed buying in insurance, paints stocks.

We are of the view that the market is overstretch and last hour selling pressure indicating strong possibility of quick intraday correction from current levels. Technically, the index has formed Hammer kind of candlestick pattern which clearly indicates indecisiveness between bulls and bears.

For the next few trading session 15,250/51,800 would be the key resistance level, trading below the same we can expect intraday correction up to 15,000-14,950/51,000-50,500. On the flip side, if index succeeded to trade above 15,250 /51,800 then uptrend continuation rally likely to continue till 15,335-15,365/ 52,200-52,500.

The market failed to hold onto its upward rally to close flat due to heavy selling towards the close, mirroring the weakness seen in the European market and outflows in equity mutual funds. Most of the sectors ended hitting rough weather with auto, pharma and media stocks being the worst affected. However, banking and finance stocks were in positive territory. US markets remained firm on hopes of the additional stimulus package and swifter economic recovery continued to maintain optimism.

Indian rupee ended higher by 8 paise at 72.88 per dollar, amidprofit bookingsawin the domestic equity market.It has opened 8 paise higher at 72.88 per dollar against previous close of 72.96 and remained in the range of 72.84-72.93.

Nifty chugged along early in the day hitting new peaks, helped by private banks and the energy sector. But it has not been a broad-based move so far though, with yesterday's winners like metals and auto giving away their gains. Clearly, traders are looking to take some money off the table, with Nifty having extended its gains for the seventh straight session post-Budget.

Rupee traded strong near 72.90 as dollar index witnesses weakness. The fund inflow from USA keeps dollar prices at check from rising, which helps rupee appreciation, along with no weakness in capital markets. Rupee if starts trading above 72.90 an important mark going ahead, we can witness further weakness in USDINR towards 72.70.

Markets remained strong before giving away all its gains in afternoon trade due to profit-taking in autos and select pivotals. The broader markets, however, witnessed the demand for FMCG stocks, insurers, select NBFC's and gas stocks.

Singre, Senior Technical Analyst at LKP Securities:

Index has witnessed a profit booking in the last hour of the session and closed a day at 15,110 with minimal loss. Going forward 15k will act as supreme support and any dip near 15k mark will be again buying opportunity with keeping overall stop out levels below 15k and if index managed to hold above-said levels then again we may see some bounce in index towards 15,255 odd levels which is immediate and strong hurdle on the higher side.

The benchmark indices erased all the intraday gains and ended with marginal losses, breaking the six day winning momentum.

At close, the Sensex was down 19.69 points or 0.04% at 51,329.08, and the Nifty was down 6.50 points or 0.04% at 15,109.30. About 1279 shares have advanced, 1634 shares declined, and 184 shares are unchanged.

Except energy and infra, all other sectoral indices trading in the red. BSE Midcap and Smallcap indices ended with marginal losses.

IOC, M&M, Tata Motors, JSW Steel and Bajaj Auto were among major losers on the Nifty, while gainers included SBI Life Insurance, Asian Paints, HDFC Life, ONGC and Titan Company.

Company's consolidated net profit rose 50.7% at Rs 274.8 crore versus Rs 182.3 crore and revenue was up 24.9% at Rs 2,118.2 crore versus Rs 1,696 crore.

The market witnessed extend the gain further after the decisive break from the Nifty 50 Index level of 15,000. The market has already attained the projected level of 15,230-15,250. The level of 15,230-15,250 act as short-term resistance. The momentum indicators like RSI, MACD to show divergence, supporting our view that the market is likely to pause around this level.

Ministry of Defence (MoD) and Bharat Electronics (BEL) have signed a contract for procurement of Software Defined Radio Tactical (SDR-Tac) worth over Rs 1,000 crore in New Delhi on February 08, 2021.