Indian benchmark indices ended lower in the volatile session on February 6 with the 30-pack Sensex falling 334.98 points or 0.55 percent at 60,506.90, and the Nifty was down 89.40 points or 0.50 percent to end at 17,764.60.
The market started on a weak note and remained in the negative territory with intraday recovery amid buying seen in the capital goods, FMCG and realty names. However, selling in metal and power stocks limited the gains.
"A strong job market in the United States pushed the global market lower on rate hike fears, as it offers the Fed more leeway in enacting stricter policy measures," said Vinod Nair, Head of Research at Geojit Financial Services.
"This was in contrast to the recent rally in the global indices on the expectation that the economy is in its last phase of policy tightening."
"RBI’s policy announcement on Wednesday will provide more colour on its future rate actions, which is expected to hike rate by 25bps," he added.
Adani Group stocks mixed
The sell-off continued in the Adani group stocks with Adani Green Energy, Adani Total Gas, Adani Power, Adani Wilmar locked at 5 percent lower circuit and Adani Transmission locked at 10 percent lower circuits.
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| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 58,991.52 | 1,031.43 | +1.78% |
| Nifty 50 | 17,359.75 | 279.05 | +1.63% |
| Nifty Bank | 40,608.65 | 698.50 | +1.75% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Reliance | 2,331.05 | 96.35 | +4.31% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Apollo Hospital | 4,310.90 | -52.10 | -1.19% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28698.60 | 687.30 | +2.45% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 12017.05 | 74.55 | +0.62% |
However, Adani Enterprises has made smart recovery from the intraday low, closing marginally in the red, while Adani Ports and Special Economic Zone also made strong recovery from the intraday low of Rs 476.95, before closing at Rs 546.05, up 9.46 percent.
Stocks and sectors
Divis Laboratories, Hindalco Industries, JSW Steel, Tata Steel and Kotak Mahindra Bank were among the biggest losers on the Nifty, while Adani Ports topped the gainers list with a 9 percent jump, followed by IndusInd Bank, BPCL, Hero MotoCorp and Apollo Hospitals.
On the sectoral front, Nifty metal index shed 2.2 percent, information technology index was down 0.6 percent and energy index fell 0.7Â percent, while FMCG index added 0.5 percent.
The BSE midcap index added 0.7 percent and smallcap index rose 0.5 percent.
On the BSE, the metal index fell 2 percent, power index down 1 percent and information technology index declined 0.6 percent. However, capital goods, FMCG and realty up 0.5 percent each.
More than 150 stocks touched their 52-week low, including Visaka Industries, Venky's, Relaxo Footwears, Nahar Polyfilms, Mercator, Gland Pharma, Nahar Spinning Mills and Divi's Laboratories, on the BSE.
Among individual stocks, a volume spike of more than 200 percent was seen in Ambuja Cements, Interglobe Aviation and Aditya Birla Fashion & Retail.
A long build-up was seen in Vodafone Idea, IndusInd Bank and Adani Ports, while a short build-up was seen in Multi Commodity Exchange of India, Jindal Steel and Divis Laboratories.
Outlook for February 7
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
While the sentiment has been sluggish over the past week or so, today's fall can be attributed to weak Asian cues and cautious approach from the investors ahead of the RBI's credit policy.
Selling seemed to have been triggered by further strengthening of dollar against the rupee, leading to weakness in metal, power & select banking stocks.
Moreover, markets may continue to witness bouts of intra-day volatility due to lack of any fresh positive triggers in the global arena.
Technically, the Nifty hovered between 17,700 to 17,800 price range. On daily charts the index has formed a small inside body bearish candle which is indicating the continuation of a non-directional activity in the near future.
For Nifty, 17,700 would be the key support level and below the same the index could slip till 17,600-17,520. On the flip side, a fresh rally is possible only after the dismissal of 17,825 and above the same, the index could rally till 17,900-17,925.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened on a negative note on February 06 & moved lower in the beginning of the session. However, the key hourly moving averages offered support on the downside & restricted further downside.
Consequently, the index traded in a sideways manner as the day progressed & ultimately formed an Inside bar on the daily chart. Going ahead, 17,700 & 17,870 are key support & resistance respectively.
The index has a potential to stretch towards the 18,000 mark as long as it stays above 17,700.
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