The market closed in the red for the fourth consecutive session on October 1 as weak global cues and losses in heavyweights pulled the benchmarks down.
At close, the Sensex was down 360.78 points, or 0.61 percent, at 58,765.58, while the Nifty was down 86.20 points, or 0.49 percent, at 17,532.
For the week, the Sensex lost 1,282.89 points (2.13 percent) to close at 58,765.58, while the Nifty50 fell 321.2 points (1.79 percent) to 17,532.
Despite favourable growth in India’s core sector output, which accelerated to 11.6 percent in August from 9.9 percent in July, domestic indices were in red, reflecting weak global cues and losses in heavyweights, Vinod Nair, Head of Research at Geojit Financial Services said.
“High Eurozone inflation at 3.4 percent in September, slowing global growth and the existing Chinese crisis bolstered global sell-off," Nair said.
"The auto sector is hold-on despite weak sales, in anticipation of festival demand, as numbers from major manufacturers showed a fall in September sales, mainly due to semiconductor supply shortage"
Bajaj Finserv, Maruti Suzuki, Asian Paints, Bajaj Finance and Bharti Airtel were among the major losers on the Nifty. M&M, Coal India, IOC, Dr Reddy’s Laboratories and ONGC were among the gainers.
The broader market— BSE midcap and smallcap indices— remained unchanged.
Nifty metal, pharma, energy and PSU Bank indices rose 0.5 percent each, while the Nifty Bank and IT indices shed 0.5 percent each.
Stocks & sectors
On the BSE, the realty index fell 1.5 percent, while buying was seen in the metal, oil & gas and healthcare names.
Among individual stocks, a volume spike of more than 100 percent was seen in Cummins India and Bata India.
Long buildup was seen in TVS Motor, Trent and Bata India, while short buildup was seen in Cummins India, Gujarat Gas and SRF.
More than 200 stocks, including ONGC, Tejas Networks, Delta Corp, GMR Infra and Tata Power, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the weekly scale but continued its sequence of higher lows of the last nine weeks.
"Now, it has to hold multiple support of 17,550-17,580 zones, for an up move towards 17,777 and 17,850 levels, whereas support is seen at 17,450 and 17,350 zones," said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for October 4
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty witnessed some lacklustre movement but managed to hold above 17450, the intraday low. The index may see a further correction to 17,300-17,350.
Technical indicators suggest a volatile movement in the market. Traders should refrain from building a new buying position until the market breadth improves.
Rohit Singre, Senior Technical Analyst, LKP Securities
The index ended the week at 17,532, losing nearly two percent, and formed a bearish candle on the weekly chart. On the daily chart, the index formed a Doji candle on October 1, hinting at indecision in the market.
The index has support near the 17,450-17,400 zone and if stays above it, a decent pullback towards an immediate and strong hurdle zone of 17620-17740 is expected where one can lock immediate profit in longs. The overall range for the Nifty is coming between 17,300 and 18,000.
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