Closing Bell: Nifty below 14,150, Sensex falls 263 pts drag by IT, FMCG stocks

Taking Stock | Profit Booking Drags Nifty Below 14,150, IT, FMCG Packs Underperform

Broader markets outperformed the main indices with BSE midcap index rose 0.4 percent and the smallcap index ended marginally lower.... Read More

Markets ended marginally lower in a volatile trading session, taking a breather after the recent surge. The benchmark opened marginally higher however profit-taking at the higher levels trimmed all the gains as the session progressed. Consequently, the Nifty ended in negative at 14,146 levels, down by 0.4%. A mixed trend was witnessed on sectoral front wherein metals, telecom and power were the top gainers while IT, FMCG and energy stocks traded subdued. The broader indices too traded mixed wherein Midcap ended higher by 0.3% while smallcap ended with losses of 0.1%.

Markets are continuously inching higher and making newer highs despite overbought conditions. We suggest booking some profits off the table and maintaining stock-specific trading approach. Also, traders should limit naked leveraged trades and prefer hedged bets.

Nifty trades around the 14100; midcap stocks have outperformed in the recent past and select stocks continue to remain in momentum. We believe within the structural up-move, interim correction phase is expected to play out. Expect volatility to increase significantly in the near term. There has been a shift in positions/interest from frontline stocks to the midcap space which usually in followed by a correction. FMCG stocks look attractive while Metals and Banking are expected to witness volatility. Traders are advised to keep leverage in control while investors can wait for a meaningful dip to buy aggressively.

Market is experiencing volatility due to weak Asian market and profit booking owing to rich valuation. Banking stocks are supportive, led by good loan growth data for Q3FY21, announced by key private banks. In the near-term, trend of the broad market will depend a lot on FII inflows while stock specific actions will be based on Q3 result, which is about to pick up.

Indian rupee ended higher at 73.11 per dollar, amid selling seen in the domestic equity market.It opened flat at 73.17 per dollar against Tuesday's close of 73.17 and traded in the range of 73.05-73.19.

The market witnessed some lackluster movement. Nifty 50 Index is still trading below the resistance level of 14250-14270. The research suggests breakout above 14270 is critical to keep the long-term positive trend, intact. The market observed volatility to expand in today’s trading session indicating profit booking and distribution of stocks at a higher market level. The investors to buy on a breakout of 14270 and look for an exit around 14680-14710. Overall, the investor should maintain a stop at 14040.

A volatile session of trade today as the situation in EU tempered optimism with pivotal like RIL & ITC giving way. However, improvement in High-Frequency Indicators and the Impending Vaccination has ensured brisk FII flows into India even as other Emerging Markets witnessed outflows.

Index opened a day with gap up but failed to hold the gains and saw profit booking and closed a day on a negative note at 14134 with loss of half a per cent and formed hanging man candle pattern which is bearish reversal candle pattern by nature. Now going ahead 14040 will be good support any break below said levels can show some more cuts in the index and on the higher side 14180-14230 zone will be strong resistance further upside-only possible if index managed to sustain above-said levels.

After a gap up opening, benchmark indices witnessed profit booking in second half which drag the Nifty below 14,150

At close, the Sensex was down 263.72 points or 0.54% at 48,174.06, and the Nifty was down 53.20 points or 0.37% at 14,146.30. About 1494 shares have advanced, 1543 shares declined, and 128 shares are unchanged.

ITC, Reliance Industries, Bajaj Finance, Axis Bank and HUL were among major losers on the Nifty, while gainers included Power Grid Corp, Shree Cements, GAIL, Hindalco and Grasim Industries.

Company's deposits rose 41% (YoY) and up 11% (QoQ). Its retail deposits were up 100% (YoY) and up 18% (QoQ). However, wholesale deposits declined 26% (YoY) and down 5% (QoQ).

Rupee traded in a volatile range between 73.35-73.05 in a muted session on dollar index as well. Rupee trades broadly in positive trend but 73.00 odd zones remain resistance for the rupee. With outcome on the election in US Georgia to come, the dollar can give a surprise bounce which can keep rupee appreciation limit near 73.00.

Company's JLR UK sales were up 28.6% at 7,934 units versus 6,171 units, Jaguar UK sales were up 82.5% at 3,386 units versus 1,855 units and Land Rover UK sales were up 5.4% at 4,548 units versus 4,316 units, (YoY), reported CNBC-TV18.