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Taking Stock | Another day of carnage; Sensex tanks 874 points, Nifty below 17,650

Adani Enterprises, Adani Ports, SBI, ICICI Bank and IndusInd Bank were among the biggest losers on the Nifty, while gainers were Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, ITC and Divis Laboratories.

January 27, 2023 / 07:07 PM IST

Blood bath continued on Dalal Street for the second consecutive session, as benchmark indices lost 1.5 percent on January 27 amid selling in most sectors, barring pharma and auto, with Adani group stocks again coming under pressure.

At close, the Sensex was down 874.16 points or 1.45 percent, at 59,330.90, and the Nifty was down 287.70 points, or 1.61 percent, at 17,604.30. For the week, the benchmarks lost more than 2 percent.

The market started on a negative note and extended the selling as the day progressed, with the Sensex and the Nifty breaking 59,000 and 17,500, intraday. Some last-hour buying helped them reduce losses.

The market plunged as Adani group stocks were battered yet again in the aftermath of a report by short-sellers Hindenburg Research that flagged debut concerns and alleged stock manipulation, charges which have been denied by the company.

Stocks and sectors

Adani Enterprises, Adani Ports, SBI, ICICI Bank and IndusInd Bank were among the biggest losers on the Nifty, while gainers were Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, ITC and Divis Laboratories.

The Nifty PSU Bank index shed 5.4 percent, Nifty Energy 5 percent and the Nifty Bank fell 3 percent. However, pharma and auto indices gained 0.5-1 percent.

Also Read: Markets in free fall, Sensex plunges 1,000 points; here's why

Sensex58,991.521,031.43 +1.78%
Nifty 5017,359.75279.05 +1.63%
Nifty Bank40,608.65698.50 +1.75%
Nifty 50 17,359.75 279.05 (1.63%)
Fri, Mar 31, 2023
Biggest GainerPricesChangeChange%
Reliance2,331.0596.35 +4.31%
Biggest LoserPricesChangeChange%
Apollo Hospital4,310.90-52.10 -1.19%
Best SectorPricesChangeChange%
Nifty IT28698.60687.30 +2.45%
Worst SectorPricesChangeChange%
Nifty Pharma12017.0574.55 +0.62%

The BSE midcap index shed 1.2 percent and the smallcap index declined 1.9 percent.

On the BSE, the power index lost 6.8 percent, oil & gas 5.7 percent and the bank index fell 3 percent. Capital, goods, metal, realty and information technology indices shed a percent each. The auto index was one of the few bright spots, rising 1 percent. The healthcare index closed 0.5 percent higher.

More than 200 stocks touched their 52-week lows on the BSE. These included ACC, Adani Green, Adani Ports, Indus Towers, Voltas, Tide Water, Laurus Labs, Dixon Technologies, Berger Paints, Bata India and Aurobindo Pharma.

More than 100 stocks touched their 52-week high including Gravita India, Jyoti, Jindal Saw and Surya Roshni.

Among individual stocks, a volume spike of more than 200 percent was seen in Dixon Technologies, Adani Enterprises and ACC.

A short build-up was seen in Dixon technologies, Indus Towers and Adani Enterprises. A long build-up was seen in Persistent Systems, Tata Motors and Hindustan Copper.

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Outlook for January 30

Amol Athawale, Deputy Vice President-Technical Research, Kotak Securities

Markets went into a tailspin on broad-based selling pressure as recessionary fears in the west and nervousness ahead of the US Federal Reserve meeting on interest rate decision pummelled stocks.

Investors cashed out of banking, power, realty and oil & gas stocks ahead of Budget 2023 and pulled down key indices below the psychological levels.

During the week, the Nifty traded below the 20-day simple moving average (SMA) and also breached the important support of 17,800. It formed a long bearish candle on weekly charts.

Technically, a minor pullback rally is possible if the index trades above 17,650. On the flip side, selling pressure is likely to accelerate after the dismissal of 17,550 and below it, the index can slip to 17,400. An extended correction can drag the index to the 200-day SMA or 17,300.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty started the week on a positive note but witnessed steep selling pressure in the second half of the week. It broke from the consolidation range, which it was witnessing for the last month.

It broke the support zone of 17,800-17,760, which will now act as resistance as per the principle of role reversal.

On the downside, the Nifty has halted near the 61.8 percent retracement of the Sept–Dec 2022 rise and 200 DEMA, which are near 17,550.

The day’s low of 17,493 will be key support. If that is breached, the decline can continue to 17,300.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Rakesh Patil
first published: Jan 27, 2023 04:07 pm