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Taking Stock | Nifty breaks 18,200, Sensex plunges 554 pts; auto, metal, realty drag

Broader markets underperformed the main indices, with BSE midcap index falling 2.2 percent and smallcap index down 1.92 percent.

January 18, 2022 / 04:28 PM IST

Final hour profit booking dragged the benchmark indices 1 percent on January 18 with Nifty closing below 18,200 and Sensex falling over 500 points amid selling seen across the sectors.

Market opened on a positive note, but wiped out initial gains and turned negative on weak global cues, including rising US treasury yield and oil price at more than seven years high amid supply concern after drone attacked at United Arab Emirates. However, indices managed to regain the lost ground in the afternoon session but final hour selling dragged the indices near the day's low.

At close, the Sensex was down 554.05 points or 0.90% at 60,754.86, and the Nifty was down 195.10 points or 1.07% at 18,113.

"Following a weak lead from the global markets, domestic indices witnessed a highly volatile trade ahead of the press conference by the Finance Minister today. Surge in oil prices and FIIs turning net sellers also added volatility in the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services.

"Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries while oil prices rose on supply tension owing to the drone attack on UAE," he added.

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Tata Consumer Products, Maruti Suzuki, UltraTech Cement, Eicher Motors and Tech Mahindra were the top Nifty losers, while gainers included Axis Bank, HDFC Bank, Dr Reddy’s Labs, ICICI Bank and Kotak Mahindra Bank.

All the sectoral indices ended in the red with auto, IT, metal, pharma and FMCG down 1-2 percent.

IndexPricesChangeChange%
Sensex52,973.84180.22 +0.34%
Nifty 5015,842.3060.15 +0.38%
Nifty Bank33,597.60476.25 +1.44%
Nifty 50 15,842.30 60.15 (0.38%)
Mon, May 16, 2022
Biggest GainerPricesChangeChange%
Eicher Motors2,617.95185.30 +7.62%
Biggest LoserPricesChangeChange%
UltraTechCement6,012.80-183.75 -2.97%
Best SectorPricesChangeChange%
Nifty PSU Bank2474.2069.85 +2.91%
Worst SectorPricesChangeChange%
Nifty IT29403.50-221.35 -0.75%

Broader markets underperformed the main indices, with BSE midcap index falling 2.2 percent and smallcap index down 1.92 percent.

Stocks and sectors

Among sectors, BSE Bankex ended in the green, while Auto, FMCG, Capital Goods, Healthcare, Metal and Realty indices shed 1-2 percent.

Short build-up seen in the Rain Industries, Ambuja Cement and Apollo Hospitals.

Among individual stocks, a volume spike over 200 percent was seen in Strides Pharma Science, Apollo Hospitals Enterprises and Cholamandalam Financial Holdings.

Over 400 stocks, including TCS, L&T and Polycab India, hit a 52-week high on the BSE.

Technical View

Nifty formed a bearish engulfing pattern on daily scale and wiped out, all the gains of last four trading sessions.

"The Nifty has to hold above 18,081 for an up move towards 18,250 and 18,350 zones, while on the downside support exists at 18,000 and 17,900 marks," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 19

Sachin Gupta, AVP-Research at Choice Broking:

Technically, the Nifty index has formed a bearish engulfing pattern, which indicates some correction in the index. A momentum indicator RSI & Stochastic has reversed from overbought territory, which suggests bearish sentiments for the coming day.

Overall market structure is bullish with positive bias, so every dip would be a buying opportunity for the long term players.

At present, the index has support at 18000 levels while resistance comes at 18300 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank Nifty has support at 37800 levels while resistance at 38600 levels.

Ajit Mishra, VP - Research, Religare Broking:

We may see a further decline in the Nifty index and the 17,950-18,050 zone would act as a support. Volatility usually remains high during the corrective phase and earnings season is further adding to the choppiness.

Keeping in mind the scenario, it’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues.

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 making any investment decisions.



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Rakesh Patil
first published: Jan 18, 2022 04:28 pm
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