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Taking Stock | Market extends losses on Beijing lockdown fears, Nifty ends below 17,000

The broader indices underperformed the benchmarks with BSE midcap and smallcap indices losing nearly 2 percent each.

April 25, 2022 / 04:45 PM IST

The Indian equity market fell for the second consecutive day on April 25, dragging the Nifty below 17,000 on weak global cues, including Beijing lockdown fears amid rising COVID-19 cases.

At close, the Sensex was down 617.26 points or 1.08% at 56,579.89, and the Nifty was down 218 points or 1.27% at 16,954.

Asian markets suffered their worst session in over a month overnight as worries that Beijing could soon be back in lockdown sent Chinese shares back to 2020 lows, and as the effects of Wall Street's 2.5% slump on Friday lingered, reported Reuters.

The rout continued in Europe too as the STOXX 600 index dropped to its lowest since mid-March, led by a 2% and 1.9% fall in French and German shares. The euro slid 0.7% to its lowest since the initial bout of COVID-19 panic in March 2020, it added.

"Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties, and supply issue," said Vinod Nair, Head of Research at Geojit Financial Services.

Close

"Fear of waning demand due to prolonged COVID lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term," Nair added.

Coal India, BPCL, Tata Steel, Hindalco Industries, and SBI Life Insurance were among the top Nifty losers while gainers included Bajaj Auto, ICICI Bank, HDFC Bank, Maruti Suzuki, and HDFC.

Among sectors, Nifty auto, energy, FMCG, pharma, IT, metal slipped 1-2 percent.

IndexPricesChangeChange%
Sensex54,884.66632.13 +1.17%
Nifty 5016,352.45182.30 +1.13%
Nifty Bank35,613.30518.40 +1.48%
Nifty 50 16,352.45 182.30 (1.13%)
Fri, May 27, 2022
Biggest GainerPricesChangeChange%
Apollo Hospital3,861.75198.95 +5.43%
Biggest LoserPricesChangeChange%
ONGC143.80-8.10 -5.33%
Best SectorPricesChangeChange%
Nifty IT28641.60709.05 +2.54%
Worst SectorPricesChangeChange%
Nifty Energy25511.85-248.65 -0.97%

Also Read - Nifty, Sensex slump for second session, 6 factors driving the sell-off

Stocks and sectors

On the BSE, except banks, all other sectoral indices ended in the red with metal and realty indices declining over 3 percent each, oil & gas and capital goods indices lost 2 percent each, while auto, FMCG, and healthcare, IT, power, indices were down 1 percent each. However, the bank index ended marginally higher.

The broader indices underperformed the benchmarks with BSE midcap and smallcap indices losing nearly 2 percent each.

A long build-up was seen in Aditya Birla Capital, Intellect Design Arena, and Gujarat Gas, while a short build-up was seen in the Tata Communications, Balrampur Chini Mills, and Coal India.

More than 150 stocks touched their 52-week high on the BSE, including Zee Media Corporation, Shree Renuka Sugars, OnMobile Global, and Adani Power.

Among individual stocks, a volume spike of more than 500 percent was seen in PI Industries, Vodafone Idea, and Godrej Consumer Products.

Outlook for April 26

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

The Nifty had attempted a leap in the last week in order to fill up a gap area on the daily chart. The index faced a fresh round of selling near the upper end of that gap area from where the index started sliding again.

The Nifty continued to roll down on April 25. It has again created a gap area on the daily chart today, which is near 17,054 – 17,149.

This will now act as a near-term resistance zone & any attempt to fill up this gap area can be treated as a fresh shorting opportunity.

The overall structure suggests that the index is likely to stay on the downward trajectory for the short term and is expected to break the swing low of 16,824 & tumble towards 16,600 in the short term.

Palak Kothari, Research Analyst at Choice Broking:

On back of weak global clues and rising COVID cases, the Index had a gap down opening and showed weakness throughout the session as it made an intraday low at 16,888.70 level and closed the session at 16953.95 level with a loss of 218 points.

Technically, on an hourly chart, the index has been trading near the support zone, and a close below 17,000-mark suggests bears are taking charge.

Furthermore, on a daily chart, the index has taken support from the lower Bollinger band and 50% RL of the previous up move, which indicates pullback can be seen in the counter. The index has given closing below 200-Daily Simple Moving Averages indicates weakness in the counter. However, the momentum indicators STOCHASTIC & MACD are trading with negative crossover on a daily Charts which indicates downside movement can be seen.

The Nifty may find support around 16,800 levels, while on the upside 17,240 may act as an immediate hurdle for the index. On the other hand, Bank Nifty has support at 35,500 levels while resistance at 37,000 levels.

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.



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Rakesh Patil
first published: Apr 25, 2022 04:45 pm
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