Closing Bell: Nifty ends near 17,600, Sensex tanks 874 pts; PSU bank, oil & gas worst hit

Taking Stock | Another day of carnage, Sensex tanks 874 points, Nifty below 17,650

Adani Enterprises, Adani Ports, SBI, ICICI Bank and IndusInd Bank were among the biggest losers on the Nifty, while gainers were Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, ITC and Divis Laboratories.... Read More

Markets finally ended a month-long consolidation phase with a breakdown and lost over 1.5%. Participants were in a cautious mood from the beginning and a sharp sell-off in the banking, IT and energy majors further soured the sentiment as the day progressed.

Consequently, Nifty slipped below the major support zone of long term moving average i.e. 200 EMA at 17550 intraday and finally settled at 17,604.35 levels. The broader indices too witnessed a severe fall and shed in the range of 1-1.5%.

The carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries.

We are now eyeing the 17,250-17,400 zone as the next support while any rebound toward the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend.

Bank Nifty had fallen below the critical support level of 41800, leading to a quick drop towards 40000. Besides, the index has sustained below the crucial moving average 50 EMA.

The RSI is in bearish crossover and falling. Over the short term the index may remain under selling pressure. On the lower end, support is visible at 40000; whereas on the higher end, resistance is visible at 40800.

The sharp slump in the Indian market was triggered by an unfavourable research report on Asia’s richest promoter group companies. This is also affecting the banking stocks even though the results of the sector are optimistic due to high group lending, indicating potential risk.

PSU banks are the most impacted compared to private banks owing to high exposure. The FIIs' cautious stance ahead of the Union Budget and FOMC meetings also fuelled the collapse.

The Nifty started the week on a positive note however witnessed steep selling pressure in the second half of the week. As a result, it broke down from the consolidation range, which it was witnessing for the last one month.

It broke the support zone of 17,800-17,760, which will now act as a resistance as per the principle of role reversal.

On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17,550. Today’s low of 17,493 will be a key support. If that is breached then the decline can continue till 17,300.

Markets went into a tailspin on broad-based selling pressure as recessionary fears in the west and nervousness ahead of the US FOMC meeting on interest rate decision pummeled stocks at will.

Investors cashed out of banking, power, realty and oil & gas stocks ahead of the budget and pulled down key indices below the psychological levels.

During the week, the Nifty traded below the 20-day SMA (Simple Moving Average) mark and also breached the important support level of 17,800 and also formed a long bearish candle on weekly charts.

Technically, a minor pullback rally is possible if the index trades above 17,650. On the flip side, selling pressure is likely to accelerate only after the dismissal of 17,550 and below the same the index could slip till 17,400. Extended correction could drag the index till the 200-day SMA or 17,300.

Indian rupee closed marginally higher at 81.52 per dollar against previous close of 81.59.

: benchmark indices ended lower on January 27 with Nifty around 17600.

At Close, the Sensex was down 874.16 points or 1.45% at 59,330.90, and the Nifty was down 287.70 points or 1.61% at 17,604.30. About 870 shares have advanced, 2588 shares declined, and 97 shares are unchanged.

Adani Enterprises, Adani Ports, SBI, ICICI Bank and IndusInd Bank were among the biggest losers on the Nifty, while gainers were Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, ITC and Divis Laboratories.

PSU Bank, oil & gas, power and metal indices down 4-6 percent.

The BSE midcap index shed 1.2 percent and smallcap index declined 1.9 percent.

Broking firm has maintained ‘Buy’ rating and raised the target price to Rs 4,619 per share.

Lower raw material costs, better FX realisation & richer product mix led to expansion in margin.

Increase earnings estimates to 14%/15% for FY24/25 on higher revenue & margin assumptions, reported CNBC-TV18.

Bajaj Auto was quoting at Rs 3,941.25, up Rs 223.85, or 6.02 percent on the BSE.

TTK Prestige touched a 52-week low of Rs 694.75 and quoting at Rs 809.15, up Rs 26.35, or 3.37 percent.

Dilip Buildcon has declared as L-l bidder for the lenders floated by the National Highways Authority oflndia on Hybrid Arnuity basis in the state of Andhra Pradesh.

Dilip Buildcon was quoting at Rs 214.70, down Rs 2.70, or 1.24 percent.

Spot gold hit USD 1949 level yesterday before retreating on stronger than expected US Q4 advance GDP, weekly jobless claims and durable goods orders. The US Dollar Index bounced back once again from the vicinity of 101.25 mark.

Today, we have US PCE inflation data, which happen to be the Fed’s preferred gauge of inflation.

Gold is consolidating ahead of the key inflation data. Risk appetite is somewhat subdued.

Hotter than expected inflation reading would make a dent in early Fed pivot expectations.

Gold is expected to trade between USD 1900 and USD 1950 in near-term.