Taking Stock: Catching breath? Sensex down 505 points, Nifty below 19,350

Sectors and stocks

Adani Ports, Power Grid Corporation, Apollo Hospitals, IndusInd Bank and Britannia Industries were among the biggest losers on the Nifty. The gainers included Tata Motors, Titan Company, M&M, SBI and TCS.

Except auto and PSU bank, all sectoral indices ended in the red with FMCG, power and realty down a percent each.

The BSE midcap index shed 0.8 percent and the smallcap 0.28 percent.

A long build-up was seen in Zee Entertainment Enterprises, PVR Inox and Tata Motors, while a short build-up was seen in Indiamart Intermesh, Mahindra & Mahindra Financial Services and Deepak Nitrite.

Among individual stocks, a volume spike of more than 300 percent was seen in Intellect Design Arena, Granules India and Titan Company.

Glenmark Pharmaceuticals, Dr. Reddy's Laboratories, Coforge, Titan, Bharat Petroleum Corporation, IOC, Bosch, HPCL, HDFC Life Insurance Company, Lupin, Mangalore Refinery & Petrochemicals, Marksans Pharma, Mahindra & Mahindra, Phoenix Mills, touched their 52-week high on the BSE.

Outlook for July 10

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets witnessed profit taking on Friday and shed nearly a percent, tracking feeble global cues. After the initial downtick, Nifty tried to inch higher but pressure in the index majors across sectors pushed the index lower as the day progressed. Consequently, it settled closer to the day’s low at 19331.80 levels. Most sectors ended lower wherein FMCG, realty and energy were among the top losers. The broader indices too witnessed a dip and lost in the range of 0.5%-0.9%.

The decline has engulfed Thursday’s bullish move and indicates the possibility of consolidation in Nifty ahead. The key is to manage positions amid the consolidation phase as we generally see volatility swings. We thus recommend keeping a check on position size and maintaining strict risk management rules in place.

Rupak De, Senior Technical analyst at LKP Securities:

The Nifty experienced a significant decline after failing to maintain its position above 19500. This drop led to the index falling below the 21EMA on the hourly chart, indicating an increasing bearish sentiment in the market.

Furthermore, the hourly RSI has shown a bearish crossover, adding to the negative outlook. The immediate support level is identified at 19300, while the resistance level remains at 19500.

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