The Indian market snapped three-day winning streak and ended lower with Nifty around 23,200 amid selling in IT and banking names despite the sector biggies Infosys and Axis Bank posted better numbers for the quarter ended December. However, gains in Reliance Industries, post reporting higher profit, helped to limit the losses.
At close, the Sensex was down 423.49 points or 0.55 percent at 76,619.33, and the Nifty was down 108.60 points or 0.47 percent at 23,203.20.
Amid weak global cues, the Indian indices opened lower and extended the losses as the day progress but buying in oil & gas, power, PSU, realty and metal names helped to trimmed intraday losses.
For the week, BSE Sensex and Nifty fell 1 percent each.
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Infosys, Axis Bank, Shriram Finance, Kotak Mahindra Bank, Wipro were among major losers on the Nifty, while gainers included BPCL, Reliance Industries, Hindalco Industries, Nestle India and Hindalco Industries.
BSE Midcap and Smallcap indices ended flat.
Among sectors, IT and Bank indices shed 2 percent each, while oil & gas, power, FMCG, PSU, capital goods, realty and metal indices added 1 percent each.
Outlook for January 20
Ajit Mishra – SVP, Research, Religare Broking
The markets remained volatile for yet another session, slipping nearly half a percent after three consecutive days of gains. Early weakness, driven by IT and banking heavyweights reacting to earnings, pulled the benchmark indices lower. However, resilience in key players like Reliance, ITC, and LT helped limit the decline. By the close, the Nifty settled at 23,203.2, down 0.5%. Sector-wise, IT and banking led the losses, while realty, metal, and energy showed strength. Interestingly, broader indices defied the trend and ended marginally in the green.
The ongoing tussle between bulls and bears reflects mixed market sentiment, with select heavyweights supporting recovery hopes on a rotational basis. However, persistent FII selling and a mixed start to the earnings season are restricting upward momentum. Until clear signs of reversal emerge, we advise maintaining a “sell on rise” strategy for the index while focusing on stock-specific opportunities during the earnings season.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty remained under bearish pressure for yet another session. Sentiment remains weak as the index declined after encountering resistance at a crucial moving average. This bearish sentiment may persist in the short term or as long as the index remains below 23,400. On the downside, it could drift toward 23,000. A decisive break below 23,000 might trigger a broader market correction. Conversely, 23,400 is likely to remain a strong resistance level.
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