Moneycontrol PRO

Taking Stock | Market squanders day's gains to end lower after a volatile session

The broader market had a mixed today. The BSE midcap index shed 0.3 percent, while smallcap index gained 0.2 percent

July 05, 2022 / 04:51 PM IST

The Indian equity market ended with losses on July 5, erasing all the intraday gains, on a day of wild swings that have almost become a norm in recent weeks.

At close, the Sensex was down 100.42 points, or 0.19 percent, at 53,134.35, and the Nifty closed 24.50 points, or 0.15 percent, lower at 15,810.90.

Despite mixed Asian cues, the Indian market started on a firm note and extended the gains as the day progressed, with the Nifty even managing to cross the psychologically vital 16,000 mark. The Sensex touched a high of 53,865.93 and the Nifty 16,025.75.

But, selling in the second half wiped out the gains and the benchmarks closed in the red.

"Domestic market had started strong by extending its yesterday’s gains supported by strong macro numbers but global bourses opened weak impacting to close with marginal losses," said Vinod Nair, Head of Research at Geojit Financial Services.

Close

The global market trend indicates that uncertainties around recession and the tightening of the monetary policy continue to hurt investor confidence. The dollar index opened sharply high, affecting the performance of emerging currencies, a depreciating the rupee, he added.

Power Grid Corporation, Shree Cements, Hindalco Industries, Apollo Hospitals and Bajaj Finserv were among the top Nifty gainers. ITC, Wipro, HDFC Life, Britannia Industries and Maruti Suzuki were among the losers on the index.

On the sectoral front, the Nifty energy index rose 0.6 percent, while the information technology index fell 0.7 percent.

IndexPricesChangeChange%
Sensex58,387.9389.13 +0.15%
Nifty 5017,397.5015.50 +0.09%
Nifty Bank37,920.60165.05 +0.44%
Nifty 50 17,397.50 15.50 (0.09%)
Fri, Aug 05, 2022
Biggest GainerPricesChangeChange%
UltraTechCement6,775.20187.15 +2.84%
Biggest LoserPricesChangeChange%
Hindalco410.80-10.90 -2.58%
Best SectorPricesChangeChange%
Nifty IT29973.55190.65 +0.64%
Worst SectorPricesChangeChange%
Nifty Energy26418.65-385.15 -1.44%

Stocks and sectors

On the BSE, the power index gained 0.6 percent and the metal index 0.4 percent. Selling was seen in realty, IT, auto and banking names.

The BSE midcap index shed 0.3 percent, while the smallcap index was up 0.2 percent.

A long build-up was seen in SBI Cards & Payment Services, Container Corporation and Godrej Consumer Products, while a short build-up was seen in RBL Bank, SRF and Coromandel International.

Among individual stocks, a volume spike of more than 200 percent was seen in Crompton Greaves Consumer Electrical, REC and SBI Cards & Payment Services.

Mahindra Lifespace Developers and Siemens touched their 52-week highs on the BSE.

Outlook for July 6

Rupak De, Senior Technical Analyst at LKP Securities

Indian equities witnessed volatility as the Nifty failed to absorb selling pressure from the call writers leading to a close around the day's low.

Despite the selling, the Nifty held above the near-term moving averages. The trend is likely to remain positive as long as it stays above 15,800. On the higher end, resistance was visible at 16,000 and 16,200.

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

Continuing the positive momentum of the last session, the Nifty opened gap up and gained in the first half of the session, testing the 16000 mark, a key barrier from a short-term perspective.

The psychologically vital mark, however, attracted a fresh round of selling, resulting in a swift decline that dragged the index in the red.

The hourly chart shows that the index couldn’t sustain above a falling trendline, which indicates exhaustion of the short-term positive momentum.

The immediate support zone for the index is near 15,750-15,800. The overall structure shows that the Nifty is still in consolidation mode in the short term in the 15,500-16,000 range.

Ajit Mishra, VP-Research, Religare Broking

It was a roller-coaster ride for markets. Initially, supportive Asian cues triggered a firm start, which was further boosted by healthy buying in banking majors and a rebound in metals, energy and pharma pack.

The complexion, however, changed completely in the second half and the index surrendered all its gains. Eventually, the Nifty ended in the red to settle at 15,810. In line with the benchmark, the broader indices ended with a marginal cut in the end.

The sharp decline can be attributed to the uncertain global markets and caution ahead of the earnings season.

The Nifty should hold decisively above 15,900 to inch towards 16,200, while a decline below 15,600 can bring the bears back.

We, however, maintain our bullish view on auto, FMCG, select pharma and realty counters and suggest utilising dips to look for buying opportunities in these spaces.

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: Jul 5, 2022 04:51 pm
Sections
ISO 27001 - BSI Assurance Mark