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Oct 22, 2020 03:38 PM IST | Source:

Closing Bell: Sensex falls 148 pts, Nifty settles below 11,900; metal stocks shine

Among sectors, pharma, IT and bank ended in the red, while buying witnessed in the energy, metal and infra sectors. BSE Midcap and Smallcap indices added 0.5-0.8 percent.

  • October 22, 2020 04:31 PM IST

    Ajit Mishra, VP - Research, Religare Broking:

    Markets traded lackluster in a narrow range and ended lower amidst weak cues. Initially, feeble global cues were weighing on the sentiment but failed to trigger any major fall. Consequently, the Nifty index settled at 11,896; down by 0.4%.  In between, movement in the broader market kept the participants busy wherein both Midcap and Smallcap index ended higher by 0.6% and 1% respectively. On the sector front, Telecom, Capital Goods and Metals were the top gainers whereas IT, Banking and Healthcare ended with losses.
    Markets are currently seeing time-wise correction after a phenomenal recovery and we feel it’s healthy for the markets before the next directional move. However, traders are facing tough times due to recent consolidation in the index while stocks are witnessing volatile swings due to the prevailing earnings season and mixed global cues. We suggest limiting naked leveraged positions in such a scenario and preferring hedge positions. Investors, on the other hand, should use this phase to accumulate quality stocks on dips.

  • October 22, 2020 04:12 PM IST

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities:

    The short term trend of Nifty is range bound with minor weak bias. There is a possibility of continuation of range bound action around 11850-11950 levels by next session. Immediate supports to be watched at 11800 and crucial upside hurdle is placed at 12025.

  • October 22, 2020 03:56 PM IST

    S Ranganathan, Head of Research at LKP Securities:

    Markets today exhibited volatility which the closing probably did not reflect as investors shopped across midcap cement counters as well as pharma stocks. Few PSU stocks including state owned PSU names witnessed value hunting today.

  • October 22, 2020 03:55 PM IST

    Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

    We closed within the current range of the Nifty: 11650-12050. The markets, marked by low volumes, moved in a tight range of about 100 points. It is just a matter of a few days when the index will either get past 12050 to achieve 12300 or break 11650 and achieve 11450.

  • October 22, 2020 03:55 PM IST
  • October 22, 2020 03:38 PM IST

    Market close: Benchmark indices broke the 4-day winning streak and ended lower with Nifty settled below 11900 dragged by the pharma, IT and banking names.

    At close, the Sensex was down 148.82 points or 0.37% at 40558.49, and the Nifty was down 41.20 points or 0.35% at 11896.50. About 1412 shares have advanced, 1188 shares declined, and 159 shares are unchanged.

    IndusInd Bank, Hero MotoCorp, Infosys, ICICI Bank and Cipla were among major losers on the Nifty, while gainers included Bharti Airtel, Tata Motors, IOC, NTPC and Bajaj Finance.

    Among sectors, pharma, IT and bank ended in the red, while buying witnessed in the energy, metal and infra sectors. BSE Midcap and Smallcap indices added 0.5-0.8 percent.

  • October 22, 2020 03:32 PM IST
  • October 22, 2020 03:27 PM IST

    ICICIdirect on Tata Metaliks:

    The investment lined up in development of water infrastructure and allied projects augurs well for DI pipes demand, which is likely to grow at a steady pace in the medium term to longer term horizon. The government had constituted the Jal Shakti Mantralaya whose primary objective is to work with states to ensure Har Ghar Jal (piped water supply) to all rural households by 2024 under the Jal Jeevan Mission, auguring well for DI pipes demand. 

    We value the stock at 6x FY22E EV/EBITDA and arrive at a target price of Rs 675. Hence, we assign a buy rating to the stock. Key risk to our call is a significant increase in raw material costs and lower-than-expected increase in demand for DI pipes.