Indian benchmarks indices snapped three-day winning momentum with Nifty closing below 17,400 amid weak global cues after US consumer prices data came in hotter than expected and subsequent comments from a Federal Reserve official raised fears the US central bank will hike rates aggressively to fight inflation.
At close, the Sensex was down 773.11 points or 1.31% at 58,152.92, and the Nifty was down 231 points or 1.31% at 17,374.80.
Market opened gap-down amid weak global cues, and extended the losses in the initial hours with Sensex falling 1,000 points but saw some recovery intraday before closing near the day's low levels.
Also Read: Market falls over 1.5% on fears of aggressive Fed hike
"Aggressive FII selling resulting from negative global cues wreaked havoc in the domestic market today. Globally markets traded in red amid mounting concerns of surging US inflation which fuelled fears of a hawkish rate hike by the central bank," said Vinod Nair, Head of Research at Geojit Financial Services.
"US inflation surged 7.5% on an annual basis with the consumer price index for all items rising 0.6% in January. On the domestic front, all sectors were deep in red with IT, realty and PSU banks being the most affected," he added.
Grasim Industries, Tech Mahindra, Infosys, HCL Technologies and UPL were the top Nifty losers, while gainers were IOC, IndusInd Bank, NTPC, Tata Steel and ITC.
Among sectors Nifty IT and PSU Bank indices fell 2.7 percent and 2 percent respectively, while auto, bank, pharma, metal, energy and FMCG indices down 0.5-1 percent.
The broader market underperformed the benchmarks with BSE Midcap and Smallcap indices fell nearly 2 percent each.
Stocks and sectors
On BSE, all the sectoral indices ended in the red with IT and realty indices down 2 percent each and Bankex, capital goods and healthcare indices down 1 percent each.
A short build-up was seen in the Info Edge, India Cements and Coforge.
Among individual stocks, a volume spike of more than 300 percent was seen in Divis Laboratories, Info Edge and Motherson Sumi.
Over 100 stocks, including HCC, Hindalco Industries and NDTV, hit a 52-week high on the BSE.
Outlook for February 14
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities
The Nifty took support near 17050 but failed to sustain above the 20-day SMA which is broadly negative. Technically, the index is witnessing non directional activity near the 50-day SMA. However, on daily and weekly charts, it is holding higher bottom formation but at the same is consistently facing resistance at 20 day SMA. Hence, the market is likely to maintain non directional activity in the near future.
The immediate support would be 17300-17250 while 17600 and 17700 would act as a crucial hurdle for the bulls. Meanwhile, after a short term correction the Bank Nifty held the level of 20-day SMA. The structure suggests 38200 or 20-day SMA and 38000 would be the sacrosanct support for the index, and above the same uptrend momentum is likely to continue till 39500-40000.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty found resistance around 17635 and slipped lower towards the gap on the daily timeframe. On the daily timeframe, a red-bodied candle is visible.
Once again, the index has slipped below the 50 EMA. The trend looks sideways to negative for the near term. On the lower end, support is visible at 17250-17265. On the other hand, Nifty needs to move beyond 17640 to change the current bearish trend.
Palak Kothari, Research Associate at Choice Broking:
On an Hourly Chart, the index has been trading below 21*50-HMA with the negative crossover which suggests weakness for next session.
Moreover, the daily momentum indicator Stochastic as well MACD is also trading with negative crossover which adds weakness in prices.
At present, the index has support at 17130 levels while resistance comes at 17600 levels. On the other hand, Bank Nifty has support at 38000 levels while resistance at 39000 levels.
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