The Indian equity market extended the previous session losses with Sensex and Nifty50 falling 1.5 percent each amid selling across the sectors barring Pharma.
At close, the Sensex was down 1,053.10 points or 1.47 percent at 70,370.55, and the Nifty was down 333.00 points or 1.54 percent at 21,238.80.
On the back of positive global markets, the benchmark indices started on a solid note but with selling in most of the sectors and a fall in Zee Entertainment shares following the Sony Group's termination of the merger plan, the market extended the losses as the day progressed to close near the day's low.
Stocks and sectors
The biggest losers on the Nifty were IndusInd Bank, Coal India, ONGC, Adani Ports and SBI Life Insurance, while gainers were Cipla, Sun Pharma, Bharti Airtel, ICICI Bank and Hero MotoCorp.
On the sectoral front, except pharma, all other sectoral indices ended in the red.
BSE Midcap and Smallcap indices were down nearly 3 percent each.
BSE Sensex fell 1,668.65 points from the from the day's high 72,039.20, while Nifty50 index shed 511.45 points from its day high 21,750.25.
Investors wealth eroded by Rs 8.24 lakh crore in today's trade as the BSE’s market capitalisation dropped to Rs 366.16 lakh crore on January 23 from Rs 374.40 lakh crore reported in previous session.
A short build-up was seen in Oberoi Realty, GMR Airports Infrastructure and IDFC, while a long build-up was seen in Cipla, Petronet LNG and Persistent Systems.
Among individual stocks, a volume spike of more than 3400 percent was seen in Nestle India, Delta Corp and Shriram Finance.
More than 450 stocks touched their 52-week high on the BSE, including ALLSEC Technologies, Aurobindo Pharma, Avantel, Borosil Renewables, Caplin Labs, Cipla, Gandhi Special Tubes, Global Health, IDBI Bank, Indian Bank, Indian Hotels, Lupin, Max Healthcare, PB Fintech, Persistent Systems, Petronet LNG, Salasar Technogies, Sterling Wilson, Sun Pharma, Torrent Pharma, Vikas Life, Visaka Industries, Waaree Renewable, Zydus Life. Click here for the full list
Outlook for January 24
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty opened gap up however it was unable to sustain and sold off. It closed in the red down ~333 points. On the daily charts we can observe that the 21750 – 21810 zone acted as a stiff resistance and the Nifty started the next leg of the fall. On the way down the Nifty is likely to drift lower towards 20870 which is the 38.2% Fibonacci retracement level of the rise from 18838 – 22124.
Daily and hourly momentum indicator has a negative crossover which is a sell signal. In case of a bounce, it should be used as a selling opportunity. Overall, the trend continues to remain weak. In terms of levels, 20977 – 20950 is the immediate support while 21400 – 21430 shall act as an immediate hurdle from short term perspective.
Bank Nifty opened gap up however it was sold into and it resumed the next leg of the decline. On the downside, the bank Nifty is headed towards 44600 from short term perspective. On the upside 45800 shall act as immediate hurdle.
Aditya Gaggar Director of Progressive Shares:
Indian equities commenced the truncated week on a firm note backed by strong quarterly numbers of heavyweights Cipla and ICICI Bank but in the opening trade itself, the bears smashed the bulls through a steep cut in the Mid and Smallcap segments. Selling pressure accelerated in the 2nd half of trading session and the Index breached the support level of 21,200 and finally settled the day at 21,238.80 with a loss of 333 points. Except for Pharma, all other sectors corrected where Media was the major laggard followed by Realty and PSU Banks.
With a loss of 3.11% & 2.87%, mid and smallcap segments underperformed the Frontline Index. On the daily chart, the Index has made a big negative candle but the lower timeframe suggests a probable reversal as it has formed an advanced harmonic bullish cypher pattern with a bullish divergence in RSI. As per the pattern, the targets are 21,550 & 21,770 while level of 20,950 will act as an immediate support.
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