Taking Stock: Bears tighten grip; Sensex sheds 1,049 pts, Nifty below 23,100

Biggest Nifty losers were Trent, Adani Enterprises, Bharat Electronics, BPCL, Power Grid Corp, while gainers included TCS, IndusInd Bank, Axis Bank and HUL.

All the sectoral indices ended in the red with realty index down 6.7 percent and oil & gas, power, PSU, metal, media down 3-4 percent.

Nifty Midcap index down 4 percent, posting biggest single-day fall since June 2024 and Smallcap Index also down 4 percent, registering biggest fall in five months.

Nearly 490 stocks hit 52-week low on the BSE, including Adani Wilmar, Shree Renuka Sugars, Tube Investment, SJVN, GMR Airports, IOC, L&T Finance, Engineers India, Hindustan Copper, Central Bank of India, Mishra Dhatu, Astral, BHEL, SAIL, UCO Bank, Rajesh Exports, Laxmi Organic, NMDC Steel, among others. Click here to view fill list

Outlook for January 14

Aditya Gaggar Director of Progressive Shares

Mayhem was seen in the Indian equity markets as relentless selling continued across the board and the Index kept on compounding its losses to conclude the session at 7 months low i.e. 23,085.95 with a loss of 345.55 points. All the sectors ended the trade in negative territory where Realty and Media witnessed an extreme beating. Carnage in the Broader markets dented the market sentiments as Mid and Smallcaps tumbled by 4.02% & 4.10% respectively.

The strong bearish candle on the daily chart denotes a strong underlying bearish trend; however, the Index is approaching its long-term trendline support (from Covid19 lows) i,e, at 22,800 from where a reversal can be anticipated as the markets have entered the oversold territory.

Ajit Mishra – SVP, Research, Religare Broking

Markets witnessed a sharp decline on Monday, losing over 1.5% as the ongoing corrective phase intensified. After opening with a gap-down, the Nifty attempted to recover early losses but faced sustained selling pressure in heavyweight stocks across sectors, driving the index lower. It ultimately closed near the day’s low at 23,085.95.

The sell-off was broad-based, with realty, metal, and energy sectors taking the biggest hits. The broader indices also experienced significant losses, plunging nearly 4% each.

The Nifty has decisively broken below the November 2024 low of 23,263.15, accompanied by a noticeable rise in the volatility index, signaling further downside risks. The next significant support is at the 22,700 level, although oversold conditions in select heavyweight stocks may lead to brief pauses in the downtrend.

Traders are advised to maintain a “sell on rise” approach for the index while prioritizing risk management. Among sectors, IT, FMCG, and select pharma stocks are relatively stable, while others remain under considerable pressure. Participants should adjust their stock-specific positions accordingly.

Rupak De, Senior Technical Analyst at LKP Securities

Bears remained at the helm as the Nifty continued to breach crucial levels. The index slipped below its previous swing low on the daily chart, indicating increasing bearishness. However, it held the 23,000 mark, which remains a key level to watch. If the Nifty sustains above 23,000 over the next few days, it could signal a potential recovery. Conversely, a decisive fall below this level might trigger a deeper correction.

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