Indian equity markets failed to sustain their early momentum and snapped a three-day gaining streak on February 19, with the Nifty slipping below the 25,400, intraday, amid broad-based selling across sectors. Investor sentiment was further weighed down by escalating tensions between the US and Iran.
After opening on a positive note, the indices pared their initial gains within the first hour of trade and gradually extended losses as the session progressed. In the last hour, profit booking dragged the Nifty below the 25,400-mark, eventually closing near the day’s low.
At close, the Sensex was down 1,236.11 points or 1.48 percent at 82,498.14, and the Nifty was down 365 points or 1.41 percent at 25,454.35.
The broader indices mirrored the performance of the benchmark indices, with the Nifty Midcap index declining 1.6 percent and the Nifty Smallcap index falling 1.3 percent.
The market capitalisation of BSE-listed companies fell by more than Rs 7 lakh crore on Thursday.
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Biggest Nifty losers included Interglobe Aviation, M&M, Bharat Electronics, UltraTech Cement and Trent, while gainers were Dr Reddy's Laboratories, ONGC, HDFC Life and Hindalco Industries.
All the sectoral indices ended in the red with Auto, Capital Goods, Realty, Power, Consumer Durables, Media down 2% each.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 76,034.42 | -829.29 | -1.08% |
| Nifty 50 | 23,639.15 | -227.70 | -0.95% |
| Nifty Bank | 55,100.95 | -634.80 | -1.14% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Coal India | 470.10 | 23.35 | +5.23% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| M&M | 3,031.20 | -137.00 | -4.32% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Energy | 36834.35 | 695.85 | +1.93% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 25098.00 | -828.00 | -3.19% |
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In stock specific action, Hilton Metal Forging shares fell 11% after board approves issue of 1.67 crore rights equity shares, Dixon Technologies shares fell 3% after CLSA downgrades rating and cut target price, Jindal Saw shares shed 4% on API restrictions.
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More than 140 stocks touched their 52-week low, including Brainbees Solutions, C. E. Info, LT Technology, Clean Science, Just Dial, Vedant Fashions, Info Edge, Jyothy Labs, Inox Wind, Ola Electric, KEC International, NCC, Cello World, among others. Click to View More
More than 100 stocks touched their 52-week high, including RBL Bank, MRPL, Torrent Pharma, JB Chemicals, AU Small Finance, KEI Industries, Union Bank, Bank of India, Indian Bank, Voltas, Tata Steel, Bharat Forge, Bank of Maharashtra, Indus Towers, Eicher Motors, Jindal Steel, Bajaj Auto, Marico, among others. Click to View More
Outlook for February 20
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty 50 erased the preceding three sessions’ gains in just one session, reversing the improving sentiment amid rising US–Iran tensions. The index slipped back below the 50DMA as well as the 21EMA in one go. The 200DMA is now positioned nearby and appears vulnerable. Follow-up selling on Friday or Monday could lead to a breakdown below the 200DMA, which may reactivate the bearish trend. On the lower end, support is placed at 25,330/25,000, while on the higher end, resistance is seen at 25,650.
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
On Thursday, the Nifty index opened with a minor gap-up, but the optimism was short-lived. The benchmark quickly lost momentum and slipped into a persistent downtrend, forming a clear pattern of lower tops and lower bottoms throughout the session. Selling pressure intensified as the day progressed, dragging the index to a close at 25454, marking a sharp decline of 1.41%.
Going ahead, for Nifty, the zone of 25350-25300 will act as immediate support for the index. Any sustainable move below 25300 will lead to further correction up to the 25150, followed by the 25000 level in the short term. While, on the upside, the 500-day EMA zone of 25550-25600 will act as an immediate hurdle for the index.
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.
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