Closing Bell: Market ends flat amid volatility; auto, metal, realty drag

Taking Stock: Market closes flat amid consolidation; auto, realty, metals drag

TCS, ITC, Britannia Industries, Wipro and Asian Paints were among the major gainers on the Nifty, while losers were HDFC Life, Tech Mahindra, Adani Enterprises, SBI Life Insurance and Maruti Suzuki.... Read More

The lacklustre trend continued to prevail as investors stayed cautious due to concerns over further rate hikes in the US and European nations and ensuing global economic slowdown. Investors are also concerned that any further disappointment in corporate earnings from bluechip companies could worsen the sentiment going ahead.

Technically, on weekly charts the Nifty has formed a long bearish candle which is largely negative. After a short term correction the Nifty has been consistently taking support near the 200-day SMA (Simple Moving Average).

For the traders, 17,550 would be the immediate support level while 17,650 could act as an important resistance zone. Below the same, the market could slip till 17,450 -17,400. Above 17,650, the chances of hitting 17,750-17,800 would turn bright.

Meanwhile, Bank Nifty is witnessing a range bound activity, with 42,400 acting as a key resistance zone, and above the same it could rally till 42,700-42,800. On the other side, below 41,900, the index could slip till 41,500-41,200.

The Nifty continues to witness a time correction as the benchmark index remained mostly range-bound before closing flat. After correcting from the recent high of 17,863, Nifty has been consolidating around the 200-day moving average for the last three days. So far, the bulls have been able to hold the Nifty above the long-term average of 200 DMA, which is considered the line of polarity for long-term investment.

A fall below 200 DMA, currently pegged at 17,605, might trigger a panic button. Below 17,600, the Nifty may slip towards 17,400. On the higher end, a resistance is placed at 17,700, above which the index may move towards 18,000.

The Bank Nifty index witnessed a volatile trading session and it closed around the critical support zone of 42,000. The index is consolidating in a broad range between 42,000-42,500 and a break on either side will have trending moves.

The index if it fails to hold the support of 42,000 on a closing basis will witness further downside toward the 41,500 level.

The Indian rupee heads higher for the second day in a row and is one of the best-performing currencies so far this month. However, the local unit marked the first weekly decline in four amid risk-off sentiments and mixed economic data.

Spot USDINR is still lacking the directional move amid low volatility and thin volumes in the absence of fresh cues. The pair has resistance at 82.27, the 100 days simple moving average, and support at 81.77, a recent swing low.

The current focus of the market is on the ongoing Q4 sector, which has a negative bias due to initial results falling below expectations, particularly in the IT sector, although some IT midcaps may exceed market expectations. However, Banking is giving early signs of sustained strength.

With global sentiment being cautious, due to expectation of another rate hike and mixed earnings released in the US, the market trend has been impacted by the withdrawal of foreign institutional investors during the week.

Indian rupee ended higher at 82.09 per dollar against previous close of 82.15.

Benchmark indices ended flat in the volatile session on April 21.

At close, the Sensex was up 22.71 points or 0.04 percentat 59,655.06, and the Nifty was down 0.50 points or flatat 17,624. About 1,498 shares advanced, 1,866 shares declined, and 135 shares were unchanged.

TCS, ITC, Britannia Industries, Wipro and Asian Paints were among the major gainers on the Nifty, while losers were HDFC Life, Tech Mahindra, Adani Enterprises, SBI Life Insurance and Maruti Suzuki.

Among sectors, realty index down 2 percent, while auto and metal indices down 1 percent each.

The BSE midcap and smallcap indices ended marginally lower.

The company posted an 11.8 percenyfall in its fourth quarter net profit at Rs 2,583 crore as against Rs 2,928 crore corresponding period year ago. Revenue was also down 3.3 down on yearat Rs 8,509 crore versus Rs Rs 8,797 crore in the previous year.

Hindustan Zinc was quoting at Rs 323.60, down Rs 3.70, or 1.13 percent.

Indian Rupee traded on a flat on Friday. weak domestic equities and some strength in US Dollar put downside pressure on Rupee. However, weak crude oil prices cushioned the downside. Dollar declined on Thursday as economic data from US led to renewed concerns over recession while most Fed officials are maintaining a hawkish rhetoric citing high inflation. There are rising odds of a 25-bps rate in the upcoming FOMC meeting.

We expect Indian Rupee to trade with a negative bias on risk aversion in global markets amid concerns over global economic slowdown and positive US Dollar. FII outflows may also put further downside pressure on the domestic currency. However, softening of crude oil prices may prevent sharp fall in Rupee. Market participants may remain cautious ahead of manufacturing and services PMI data from US. USDINR spot price is expected to trade in a range of Rs 81.70 to Rs 82.80 in the near term.

PNC Infratech has received Letter of Acceptance (LOA) from the Ministry of Road Transport & Highways (MORT&H)

The project includes construction of 4-lane highway from Km 49.155 to Km 74.700 (Singraur Uphar to Baranpur Kadipur Ichauli) of NH-731A with paved shoulders (i/c Ganga Bridge) in the state of Uttar Pradesh on Hybrid Annuity Mode (Package-II I).

PNC Infratech was quoting at Rs 283.45, up Rs 6.45, or 2.33 percent.

The Sensex was up 41.79 points or 0.07 percentat 59,674.14, and the Nifty was up 0.30 points or flatat 17,624.80. About 1,336 shares advanced, 1,858 shares declined, and 113 shares were unchanged.