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Taking Stock: Market snaps 4-day losing streak led by banks; realty, auto, IT drag

The broader indices underperform the benchmarks, with BSE midcap and smallcap falling more than1 percent each

October 25, 2021 / 04:27 PM IST

After a positive start, the benchmark indices swung between gains and losses throughout the October 25 session to end on a positive note, breaking a four-day losing streak.

At close, the Sensex was up 145.43 points, or 0.24 percent, at 60,967.05 and the Nifty was up 10.50 points, or 0.06 percent, at 1,8125.40.

The market opened weak, however strong support from banking stocks helped to balance the bearish pressure and lifted the indices to trade flat, said Vinod Nair, Head of Research at Geojit Financial Services.

“Improved asset quality and business growth based on key Q2 earnings aided the banking sector to improve the outlook leading to outperformance," he said.

Global markets were steady, anticipating a robust quarter in the backdrop of inflation fears and possible tightening of monetary policy.

Close

The broader indices underperformed the benchmarks, with BSE midcap and smallcap falling more than1 percent each.

ICICI Bank, Axis Bank, ONGC, JSW Steel and Dr Reddy’s Laboratories were among the major Nifty gainers. Losers included BPCL, SBI Life Insurance, Bajaj Finserv, Bajaj Auto and HCL Technologies.

On the sectoral front, the Nifty Bank and PSU Bank indices were up 1-2 percent, while auto, FMCG and IT indices were down a percent each.

IndexPricesChangeChange%
Sensex58,468.06834.41 +1.45%
Nifty 5017,412.00235.30 +1.37%
Nifty Bank37,161.35542.95 +1.48%
Nifty 50 17,412.00 235.30 (1.37%)
Wed, Dec 08, 2021
Biggest GainerPricesChangeChange%
Wipro650.5018.10 +2.86%
Biggest LoserPricesChangeChange%
HDFC Life688.75-5.65 -0.81%
Best SectorPricesChangeChange%
Nifty IT35983.70711.40 +2.02%
Worst SectorPricesChangeChange%
Nifty Pharma13319.2084.80 +0.64%

Stocks and sectors

On the BSE, except Bankex, which was up 2.3 percent, all other sectoral indices ended in the red. Auto, FMCG, IT and realty indices were down 1-2 percent.

Among individual stocks, a volume spike of more than 2,400 percent was seen in Sun TV Network, NALCO and L&T Finance Holdings.

Long buildup was seen in Sun TV Network, ICICI Bank and Bank of Baroda, while short buildup was seen in Bata Indian, Grasim Industries and Divis Laboratories.

More than 200 stocks, including ICICI Bank, RITES, MRPL and Bank of Baroda, hit a 52-week high on the BSE.

Market outlook for October 26

Rohit Singre, Senior Technical Analyst, LKP Securities

A good support zone has been formed near 18,030-17,970 and if the index holds the level, the pullback can be extended. Any dip near the support zone will be a buying opportunity.

On the higher side, the index has formed resistance near 18,225-18,300 zone and a fresh move is possible only above 18,300.

Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities

We are of the view that the short-term structure is weak but a quick pullback rally is not ruled out if the index succeeds to trade at 18,000-18,050.

Once again, 18,050 could act as a sacrosanct support level for day traders. Above it, the pull-back rally can extend up to 18,250-18,310. The uptrend, however, would be vulnerable below 18,050 or below the 20-day SMA.

Rajesh Palviya, VP -Technical and Derivative Research, Axis Securities

The next higher levels to be watched are around 18,300. A sustainable move above 18,300 may cause momentum towards 18,500-18,700.

On the downside, any violation of the intraday support zone of 18,000 may cause profit booking towards 17,800-17,600 levels. The daily strength indicator RSI has eased from the overbought zone, indicating profit-booking at higher 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.
Rakesh Patil
first published: Oct 25, 2021 04:27 pm

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