The Indian market snapped a two-day winning streak to ended lower in a volatile session on January 19, pulled down by auto, power and FMCG names.
Amid negative global markets post weak US economic data and hawkish comments from the Federal Reserve officials, the market started on a weaker note and remained rangebound. Last-hour buying, however, helped trim the losses, with the Nifty managing to close just above 18,100.
At Close, the Sensex was down 187.31 points, or 0.31 percent, at 60,858.43, and the Nifty was down 57.50 points, or 0.32 percent, at 18,107.80.
"Domestic indices snapped their previous gains amid negative sentiments from their global counterparts. Weak US consumer data and hawkish comments from the Fed's policymakers on Wednesday hammered investor risk appetite," said Vinod Nair, Head of Research at Geojit Financial Services. Lingering fears of a recession dragged global bourses down, leaving the market volatile. he added.
Stocks and sectors
Adani Enterprises, Asian Paints, Tata Motors, IndusInd Bank and Kotak Mahindra Bank were among the top losers on the Nifty, while gainers were Coal India, UPL, ONGC, SBI Life Insurance and BPCL.
Among sectors except Nifty PSU Bank all other indices ended on a negative note, with FMCG and metal indices down 0.5 percent each.
BSE midcap and smallcap indices ended flat.
On the BSE, the power index shed 1 percent, the auto index 0.5 percent and the FMCG index fell 0.8 percent. The metal index added 0.57 percent.
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Hindustan Zinc, Jindal Saw, Ramky Infrastructure, Gravita India, Surya Roshni, Roto Pumps, Atul Auto, Swan Energy, Mold-Tek Technologies, touched their 52-week high on the BSE
Among individual stocks, a volume spike of more than 300 percent was seen in Indiabulls Housing, Persistent Systems and Asian Paints.
A short build-up was seen in Torrent Power, Adani Enterprises and Indiabulls Housing Finance. A long build-up was seen in Persistent Systems, Sun Pharma and Vedanta.
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Outlook for January 20
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty has given a bullish breakout recently from a base triangle pattern formation. On January 19, it witnessed a brief consolidation, which has resulted in an Inside bar pattern on the daily chart. The overall structure shows that this is only a pause & is expected to be followed by the next leg on the upside.
From a short term perspective, any dip towards 18,050-18,000 can be taken as a fresh buying opportunity. Over the next few sessions, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 & head towards 18,500.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session. Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities.
Technically, after a promising pullback rally, the Nifty has formed a inside body candle formation which is indicating non directional activity.
For traders, 18,050 would be the immediate support zone and below the same the index could slip till 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200.
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.
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