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Taking Stock | Bears back in action; Nifty ends below 17,100; Sensex dives 537 points

More than 100 stocks, including Reliance Industries, Schaeffler India, Omaxe, and Adani Enterprises, touched their 52-week high on the BSE.

April 27, 2022 / 05:02 PM IST

After seeing a recovery in the previous session, the bears again took charge of the Dalal Street with benchmark indices falling nearly one percent in the volatile session on April 27, amid selling across the sectors.

Amid weak global markets, the Indian equity market opened on a negative note with extended selling in the afternoon session. However, the market saw some recovery in the second half.

At close, the Sensex was down 537.22 points or 0.94 percent at 56,819.39, and the Nifty was down 162.40 points or 0.94 percent at 17,038.40.

"The market continued to be gripped by high volatility following a heavy selloff in the global markets led by an intensified energy crisis, and weak Chinese economic outlook underpinned by prospects of US rate hikes," said Vinod Nair, Head of Research at Geojit Financial Services.

"Investors are weighing the possibility of a global slowdown due to monetary tightening by central banks, lockdown in China, and Russia-Ukraine war. This has resulted in an outflow of funds from equity markets to safe havens," he added.

Close

Bajaj Finance, Bajaj Finserv, Tata Consumer Products, Adani Ports and ICICI Bank were among the top Nifty losers, while gainers were Hero MotoCorp, Tata Steel, Asian Paints, Bajaj Auto and TCS.

On the sectoral front, Nifty Bank and Energy shed one percent each, while Auto, FMCG, IT, Pharma and PSU Bank indices were down 0.5 percent each.

Stocks and sectors

IndexPricesChangeChange%
Sensex54,288.61-37.78 -0.07%
Nifty 5016,214.70-51.45 -0.32%
Nifty Bank34,247.60-28.80 -0.08%
Nifty 50 16,214.70 -51.45 (-0.32%)
Mon, May 23, 2022
Biggest GainerPricesChangeChange%
M&M941.9038.10 +4.22%
Biggest LoserPricesChangeChange%
JSW Steel547.55-83.55 -13.24%
Best SectorPricesChangeChange%
Nifty Auto11115.20200.60 +1.84%
Worst SectorPricesChangeChange%
Nifty Metal5241.60-464.75 -8.14%

On the BSE, except metal, all other sectoral indices ended in the negative territory with bank, oil and gas, and power indices down 1-2 percent.

The BSE midcap index shed 0.88 percent and smallcap index fell 0.61 percent.

A long build-up was seen in Hero MotoCorp, Balkrishna Industries and Aditya Birla Capital, while a short build-up was seen in Bajaj Finance, Trent and Vodafone Idea.

Over 100 stocks, including Reliance Industries, Schaeffler India, Omaxe, and Adani Enterprises touched their 52-week high on the BSE.

Among individual stocks, a volume spike of more than 100 percent was seen in Oberoi Realty, Muthoot Finance and Syngene International.

Outlook for April 28

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:

For the short term, the Nifty remains in a corrective phase with resistance placed at 17,315 levels. From the medium-term perspective, we broadly remain positive and advise accumulating on dips. We see value in select financial and energy stocks while IT stocks are expected to trade with a negative bias.

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

The Nifty, with a minor degree bounce on April 26, had reached near a falling trendline on the hourly chart, which was around 17,200. Thereon the index nosedived on April 27. Structurally, the price action over the last few sessions has taken the form of a triangular pattern, which is expected to be a continuation pattern in this case.

The index can witness a brief consolidation in the range of 17,150-16,900 and can ultimately break out on the downside. Thus, from a short-term perspective, the Nifty is expected to test the swing low of 16,824 below which 16,600 will be the subsequent target to watch out for.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

On Wednesday, the Benchmark indices corrected sharply, and the Nifty fell 160 points. The Nifty opened with a gap down and maintained a negative stance throughout the day. Among sectors, all the major sectoral indices traded in the red, but financials lost the most, shedding over 1.5 percent.

Technically, the market is witnessing non-directional activity, and once again, the index succeeds to close below the 50-day SMA and post gap down opening, it has formed a bearish candle.

For the traders now, 17,125 would be the immediate resistance level. If the index clears the resistance of 17,125 then it may hit the level of 17,200. However, trading below 17,000 could increase further weakness. Below 17,000 chance of hitting 16,900-16,850 would turn bright.

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

Disclosure: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.



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Rakesh Patil
first published: Apr 27, 2022 04:56 pm
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