Closing Bell: Sensex ends below 51K, Nifty below 15,000; PSU banks worst hit

Taking Stock: Sensex, Nifty Slip Again On Profit Booking, PSU Banks Take A Hit

All sectoral indices ended in the red with the PSU bank index down 4.7 percent, while the auto, bank, infra, metal and pharma indices shed 1-2 percent.... Read More

Markets drifted lower for the fourth successive session and lost nearly a percent, tracking unsupportive global cues. After a weak start, the benchmark indices tried to recovery but profit-taking in banking, auto, metal and healthcare majors gradually pushed the index southward. Consequently, the Nifty index settled below 15,000 and we had a similar trend on the sectoral front.

Nifty has critical support at 14,800 and a decisive break may result in further fall else consolidation will continue. We reiterate our cautious stance and suggest focusing more on position management during the corrective phase. Further, volatility is likely to remain high across the board. Traders should align their positions accordingly and limit leveraged positions.

Consolidation continued as increasing volatility & weak global cues influenced investors to stand on the sidelines, leading the market to close below 15k level. PSU banks and mid-cap stocks which outperformed the market during the week attracted selling pressure today. Sentiments across the globe were also wounded by increasing bond yield, higher commodity price and the disappointing US data.

Index closed a week on a negative note at 14,982 with loss of more than one percent and formed a bearish engulfing kind of candle pattern on weekly chart which represents trend reversal. As index managed to breached to its strong support of 15k mark which will acts as an immediate resistance now, so above 15k mark we may see some relief otherwise we may see more downside levels of 14,900-14,750 on the other hand 15,100-15,170 will act as a strong hurdle on the higher side.

The Nifty-50 & BSE Sensex declined by 1.2% this week as market mood became cautious on rising global and local bond yields. The broader markets that is NSE Mid Cap 100 Index and BSE Small Cap Index are both in the green this week. The US 10 Year Bond yields have risen from below 1% to 1.29% building in economic impact of the USD 1.9 trillion stimulus package. In India too the 10 year bond yields have moved up from recent low of 5.76% to 6.13% which could mainly be linked to the higher fiscal deficit estimates. We expect domestic 10-year bond yields to be in the range of 6-6.75% in this calendar year.

Oil & Gas & power stocks were major gainers this week. Almost 37 stocks from Nifty-50 lost ground this week with Pharma and select consumers having lost the most. This week PSU banks were in demand on reports of government likely to bring amendments to two legislations later this year to facilitate privatisation of public sector banks. We need to see if Nifty-50 holds the 15,000 level in the near term. The next major support for the Nifty-50 is the 50 DMA placed at 14,321 as of now.

Profit booking extended for a fourth session today, as Indian markets briefly dipped to their lowest level in 2 weeks. The selling today was across the board, with broader markets also retreating sharply before a minor recovery in the last hour of the session. For the week, Nifty formed a Bearish Engulfing candlestick pattern.

The early week reversal from just underneath the 161.8% fibonacci retracement level of 15,470 indicates that this is an important resistance to keep an eye on in the short-term. Meanwhile, the immediate support to focus on is today's low of 14,900. If Nifty sustains below 14,900 in the coming week, the correction is likely to extend towards 14,730-14,600. However, if the index manages to hold above 14,900 and goes on to surpass 15,470, a fresh up leg can be expected to unfold that could take the index towards 15,910.

Profit Taking was evident throughout the day as we witnessed several Pivotals succumbing to selling pressure as traders feared rising covid cases in Maharashtra. The PSU bank index which rose 12% in the last two days shed 5% today.

Benchmark indices ended lower for the fourth consecutive day on February 19 with Nifty breaching 15,000 level on the back selling seen across the sectors.

At close, the Sensex was down 434.93 points or 0.85% at 50,889.76, and the Nifty was down 137.20 points or 0.91% at 14,981.80. About 1175 shares have advanced, 1727 shares declined, and 170 shares are unchanged.

ONGC, Hero MotoCorp, Tata Steel, SBI and Tata Motors were among the major losers on the Nifty, while the gainers were UPL, IndusInd Bank, Dr Reddy’s Labs, GAIL and HUL.

All sectoral indices ended in the red with the PSU bank index down 4.7 percent, while the auto, bank, infra, metal and pharma indices shed 1-2 percent. BSE Midcap and smallcap indices ended in the red.

Muthoot Finance on Friday said its board has approved a proposal to raise up to Rs 6,000 crore by issuing non-convertible debentures (NCDs).

The funds would be raised by way of private placement of redeemable NCDs to be issued in one or more tranches as may be decided by the board or a committee there of from time to time, it said in a BSE filing.

Oil prices slid more than 1% on Friday, adding to overnight declines, on worries that refineries will take time to resume operations after the big freeze in the U.S. South, creating a gap in demand, while OPEC+ supplies were expected to rise.

After a few days of the lackluster movement, we witnessed a decisive breakdown below level of 15000 in today’s market activity. The expected levels of the market are likely to be in the range of 14,860 and 15,250, and it’s going to crucial for the short-term market scenario to sustain above the 14,860 level. Therefore, The short-term traders use the rally to exit while buying any dip towards the support level around 14,860-14,840. The market breadth to deteriorate, indicating a likelihood of higher volatility.

Lupin has received approval for its Droxidopa Capsules, 100 mg, 200 mg, and 300 mg, from the United States Food and Drug Administration, to market a generic equivalent of Northera Capsules, 100 mg, 200 mg, and 300 mg, of Lundbeck NA Ltd. The product will be manufactured at Lupin’s facility in Nagpur, India.

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