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Taking Stock: Profit-booking continues for the fourth day; mid, smallcaps underperform

BSE midcap and smallcap indices underperformed the benchmarks, falling a percent each

October 22, 2021 / 04:36 PM IST
Representative image

Representative image

The Indian market squandered yet another positive start to end lower for the fourth straight session on October 22 amid volatility.

At close, the Sensex was down 101.88 points, or 0.17 percent, at 60,821.62, and the Nifty slipped 63.20 points or 0.35 percent, to 18,114.90. For the week, the Sensex was down 0.9 percent and the Nifty 1.2 percent.

The index ended at 18,114, losing more than one percent for the week. It formed a dark cloud cover candle, which is a bearish reversal candle pattern. If the index slips below 18,000, a short-term reversal is likely, said Rohit Singre, Senior Technical Analyst, LKP Securities.

"The index has formed consecutive bearish candles throughout this week, which hints at bears trying to grip the market from higher levels and which will be possible if we drag below the 18k mark in the coming week," he said

The immediate supports for the Nifty is near 18,000 followed by 17,950 zone. If the index holds above 18,000, a swift pullback can be expected. Resistance is near the 18,250-18,350 zone, Singre added.

Close

The broader indices underperform the benchmarks, with BSE midcap and smallcap falling a percent each.

Hindalco Industries, Coal India, Tata Motors, ITC and Tata Consumer Products were among the major Nifty losers. Gainers included HDFC, Bajaj Auto, Kotak Mahindra Bank, ONGC and Axis Bank.

On the sectoral front, the Nifty metal index shed 3 percent and auto, pharma, FMCG and IT indices fell a percent each, however, some buying was seen in banking names.

IndexPricesChangeChange%
Sensex58,444.36-16.93 -0.03%
Nifty 5017,393.70-7.95 -0.05%
Nifty Bank36,630.15121.90 +0.33%
Nifty 50 17,393.70 -7.95 (-0.05%)
Fri, Dec 03, 2021
Biggest GainerPricesChangeChange%
Larsen1,832.8043.60 +2.44%
Biggest LoserPricesChangeChange%
Bharti Airtel721.75-10.80 -1.47%
Best SectorPricesChangeChange%
Nifty PSU Bank2653.2012.40 +0.47%
Worst SectorPricesChangeChange%
Nifty Pharma13456.40-100.60 -0.74%

Stocks and sectors

On the BSE, the realty index gained over 2 percent and teh Bankex was up 0.7 percent. However, auto, healthcare, FMCG, IT and metal indices were down 1-3 percent.

Among individual stocks, a volume spike of more than 200 percent was seen in TVS Motor, Muthoot Finance and Trent.

Long buildup was seen in Federal Bank, IEX and Kotak Mahindra Bank, while short buildup was seen in Indiamart Intermesh, Can Fin Homes and Adani Ports.

More than 150 stocks, including Visa Steel, SBI, Kotak Mahindra Bank and DB Realty, hit a 52-week high on the BSE.

Market outlook for October 25

Mohit Nigam, Head-PMS, Hem Securities

Indian benchmark indices fell for the fourth consecutive session. Strong selling was seen in metal and IT stocks, while banking and realty names saw some buying.

Immediate support for the Nifty is 18,000. According to our analysis, if the Nifty sustains 18,000, we can see a reversal in the market.

In the near term, the market direction will depend on Q2FY22 earnings and management commentary, demand during the ongoing festival seasons and commodity prices.

Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services

The Nifty has to cross and hold above 18,150 to witness an up move towards 18,300 and 18,450. On the downside, support exists at 18,000 and 17,947.

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 22, 2021 04:36 pm

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