Indian benchmark indices started the week on a negative note, extending the losing streak on second day with Nifty 50 slipping below 25,200, intraday, amid selling seen in the IT, financial and pharma stocks.
The information technology stocks remained under pressure after US President Donald Trump levied $100,000 fee on new H-1B visa, however, seen some recovery on clarification. Also, GST implementation from today and extended buying in Adani Group stocks helped to recover intraday losses.
At close, the Sensex was down 466.26 points or 0.56 percent at 82,159.97, and the Nifty was down 124.70 points or 0.49 percent at 25,202.35. BSE Midcap and smallcap indices shed 0.7% each.
Also Read: Trump’s H-1B fee shock eases but Indian IT faces gathering storms
On the sectoral front, IT index was down 2.7 percent, pharma down 1.2 percent, while power index was up 1.6 percent, oil & gas index up 0.4 percent and metal index rose 0.4 percent.
Biggest Nifty losers were Tech Mahindra, TCS, Infosys, Wipro, Cipla, while gainers were Adani Enterprises, Bajaj Auto, Eternal, Adani Ports, Bajaj Finance.
Also Read: Domestic investors bring fresh breeze, push India towards 3rd largest capital market: DIPAM Secy
In stock-specific action, HUDCO share price surged nearly 5% on signing MoU with NBCC (India), Oil India shares added 1.2% post JV with RVUNL, Adani Power rose 20% as shares trade ex-split, Shipping Corporation of India shares rose 2.7% on signing MoU with BPCL, HPCL, IOC, Netweb Technologies India shares added 7% on bagging order worth Rs 450 crore, RailTel Corporation of India shares down 2% despite Rs 18.06 crore order win, Lupin share price down 2% post 4 observations from USFDA.
More than 200 stocks touched their 52-week highs on the BSE, including Adani Power, Muthoot Finance, Polycab, Eternal, Canara Bank, L&T Finance, Radico Khaitan, Grasim Industries, UNO Minda, JSW Steel, Gujarat Mineral, Hyundai Motor, among others. Click to View More
Outlook for September 23
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty has been witnessing a pullback over the last two days, which is absolutely normal considering the 1,000-point rally that preceded it. In fact, such minor corrections are healthy for a sustained uptrend.
In the short term, support is placed at 25,050, and the overall structure remains intact as long as the index holds above this level. A decisive break below 25,050 could extend the correction towards 24,800.
On the upside, resistance is seen at 25,250. A move above this level could signal a resumption of the uptrend.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Nifty continued to slide down for the second consecutive sessions on Monday and closed the day lower by 124 points amidst volatility. After opening with a downside gap of 89 points, the market showed quick recovery from the lows and filled the opening down gap in the early part of the session. Nifty was unable to sustain the recovery and declined again in the mid to later part of the session and closed near the lows.
A reasonable negative candle was formed on the daily chart with gap down opening and with long upper shadow. Technically, this market action indicates continuation of short-term downward correction in the market with sell on rise.
Medium to long-term trend of Nifty remains positive and the current weakness could be a buy-on-dips opportunity for the short term. Nifty is expected to find support around 25000 levels and is likely to bounce back from the lows. Immediate resistance is placed at 25450.
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