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Taking Stock: Profit-booking drags Nifty below 18,300; metal, power, realty underperform

The broader indices underperform the main indices, with BSE midcap and smallcap losing 2 percent each

October 20, 2021 / 05:01 PM IST

The market saw profit-booking for the second day on October 20 as selling across sectors dragged Indian shares lower. At close, the Sensex was down 456.09 points, or 0.74 percent, at 61,259.96 and the Nifty was down 152.20 points, or 0.83 percent, at 18,266.60.

"The ongoing market correction is not an overreaction and can sustain in the near-term due to high valuations. However, in the future, Indian corporates will benefit from the reforms and China plus one strategy which happened during 2020-21," said Vinod Nair, Head of Research at Geojit Financial Services.

The long-term economy and market trend is intact due to further re-opening of the economy, low-interest cycle and fiscal and private spending, he said.

"This correction will give leeway for value-buying, defensives and upcoming stocks and sectors that evolved from this new demand," he added.

The broader indices underperform the main indices with the BSE midcap and smallcap lost 2 percent each.

Close

Hindalco, Titan Company, HUL, BPCL and Bajaj Finserv were among the major Nifty losers. Gainers included Bharti Airtel, SBI, Tata Motors, IndusInd Bank and Axis Bank.

Except PSU bank, all other sectoral indices ended in the red, with Nifty metal, auto, energy, FMCG and pharma indices down 1-2 percent.

Stocks and sectors

IndexPricesChangeChange%
Sensex58,807.13157.45 +0.27%
Nifty 5017,516.8547.10 +0.27%
Nifty Bank37,082.45-202.25 -0.54%
Nifty 50 17,516.85 47.10 (0.27%)
Thu, Dec 09, 2021
Biggest GainerPricesChangeChange%
ITC235.4010.45 +4.65%
Biggest LoserPricesChangeChange%
HDFC Bank1,526.85-26.95 -1.73%
Best SectorPricesChangeChange%
Nifty FMCG38201.70541.80 +1.44%
Worst SectorPricesChangeChange%
Nifty Bank37082.40-202.30 -0.54%

On the BSE, the metal index lost over 2 percent. Auto, capital goods, FMCG, healthcare, oil & gas, power and realty indices were down over a percent each.

Among individual stocks, a volume spike of more than 300 percent was seen in Indiabulls Housing Finance, Indus Tower and Jubilant FoodWorks.

Long buildup was seen in Indus Tower, Persistent Systems and Metropolis Healthcare, while short buildup was seen in JK Cement, Voltas and ICICI Prudential Life Insurance Company.

More than 150 stocks, including Larsen & Toubro Infotech, Bata India and ICICI Bank, hit a 52-week high on the BSE.

Market outlook for October 21

Mohit Nigam, Head-PMS, Hem Securities

Benchmark indices witnessed sell-off for a second consecutive session. We believe profit-booking witnessed during the day is healthy for the market and any significant dip is a good opportunity to accumulate quality stocks. Immediate support for the Nifty 50 is 18,100.

Palak Kothari, Research Associate, Choice Broking

On the technical front, the Nifty has confirmed the bearish engulfing candle pattern, which points to weakness in the counter for the upcoming session. The Index has immediate support at 18,200, while an upside resistance is intact at 18,600.

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 20, 2021 05:01 pm

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