Closing Bell: Nifty ends at around 18,100, Sensex falls 187 pts; power, FMCG drag

Taking Stock | Market ends lower amid volatility; power, FMCG top drags

On the BSE, the power index shed a percent, the auto index 0.5 percent and the FMCG index fell 0.8 percent. The metal index added 0.57 percent

The Nifty has given a bullish breakout recently from a base triangle pattern formation. On January 19, it witnessed a brief consolidation, which has resulted in an Inside bar pattern on the daily chart. The overall structure shows that this is only a pause & is expected to be followed by the next leg on the upside.

From a short term perspective, any dip towards 18,050-18,000 can be taken as a fresh buying opportunity. Over the next few sessions, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 & head towards 18,500.

The Bank Nifty continues to trade sideways as the banking index traded within a narrow range before closing slightly lower.

The sentiment remains sideways to positive as long as it remains above 41800. The momentum indicator is in positive crossover on the daily chart.

The current trend is likely to continue until the Bank Nifty falls below 41800. On the higher end, a resistance is visible at 42500.

Domestic indices snapped their previous gains amid negative sentiments from their global counterparts. Weak US consumer data and hawkish comments from the Fed's policymakers on Wednesday hammered investor risk appetite.

Lingering fears of recession dragged global bourses down, leaving the market volatile.

The uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session. Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities.

Technically, after a promising pullback rally, the Nifty has formed a inside body candle formation which is indicating non directional activity.

For traders, 18,050 would be the immediate support zone and below the same the index could slip till 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200.

Piper Serica Advisors has raised 75 crore funds from a wide range of investors and expects to raise the remaining Rs 25 crore in a couple of months to invest in start-ups with exponential growth models.

The Angel fund has invested an undisclosed sum in ALT Mobility, Crediwatch, ZFW Dark Stores, Driffle and Oditly.

It was a muted day after Wednesday’s gain amid lacklustre domestic equities and weaker Asian currencies. However, the start-ups are getting good responses from institutional investors which are supporting the rupee.

Market participants started positioning for SBI green bond inflows and Adani’s FPO inflows.

In the near-term, trend for USDINR remains bearish and breaching 81.20 pave way for 80.60 while on the higher side 81.70, the 100-day simple moving average will act as resistance.

Indian rupee closed 11 paise lower at 81.35 per dollar against previous close of 81.24.

: Benchmark indices ended lower in the volatile session on January 19.

At Close, the Sensex was down 187.31 points or 0.31% at 60,858.43, and the Nifty was down 57.50 points or 0.32% at 18,107.80. About 1549 shares have advanced, 1867 shares declined, and 117 shares are unchanged.

Adani Enterprises, Asian Paints, Tata Motors, IndusInd Bank and Kotak Mahindra Bank were among the top losers on the Nifty, while gainers were Coal India, UPL, ONGC, SBI Life Insurance and BPCL.

Among sectors, power, FMCG and auto down 0.5-1 percent.

BSE midcap and smallcap indices ended on flat note.

The street is expecting Finance Minister to bat like Suryakumar Yadav, bowl like Umran Malik and field like Ravindra Jadeja.

Market expects budget to be growth oriented by increasing spend in infrastructure, healthcare and education. The budget should take steps to tackle these challenges facing Indian economy viz. subdued consumption at the bottom of the pyramid, control widening trade deficit and boost private sector investment.

The budget has to assure the investor that it is on the path to fiscal prudence while keeping tax rates stable. This is possible if budget 2023 raises non tax resources by asset monetisation and plug tax loopholes.