The Indian equity benchmarks ended in the negative territory for the fourth consecutive session on May 11 amid mixed global cues.
Despite mixed global cues, the Indian indices opened flat with a positive bias, but soon pared the opening gains and turned negative. The selling got extended as the day progressed with the Nifty breaching the 16,000 mark. Meanwhile, the market saw some recovery in the final hour of trade helped by banks, oil & gas, and realty names.
At Close, the Sensex was down 276.46 points or 0.51% at 54,088.39, and the Nifty was down 72.90 points or 0.45% at 16167.10.
"Nifty recovered smartly from the day's low before closing with a marginal loss. On the lower end, it found support at 16,000 as it closed at 175 points off the day's low," said Rupak De, Senior Technical Analyst at LKP Securities.
"On the daily chart, a large lower wick indicates buying at the lower level. On the higher end, the Nifty is likely to move towards 16,400. On the lower end, support is seen at 16,100/15,950."
Shree Cements, Bajaj Finserv, Larsen and Toubro, Bajaj Finance, and NTPC were among the top Nifty losers, while ONGC, Axis Bank, IndusInd Bank, Cipla, and HDFC were the top gainers.
Among sectors, except Nifty Bank, (up 0.6 percent) all other indices ended in the red with IT, auto, FMCG, and pharma down 0.5-1 percent.
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| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 57,527.10 | -398.18 | -0.69% |
| Nifty 50 | 16,945.05 | -131.85 | -0.77% |
| Nifty Bank | 39,395.35 | -221.55 | -0.56% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Cipla | 877.25 | 8.15 | +0.94% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Finserv | 1,240.65 | -49.35 | -3.83% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 11755.35 | -25.55 | -0.22% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5372.90 | -124.95 | -2.27% |
Stocks and sectors
On the BSE, IT, auto, FMCG, pharma, power, and capital goods indices shed 0.5-1 percent. On the other hand, the Bank index rose 0.7 percent and the Realty index added nearly 1 percent.
Among broader indices, the BSE midcap index shed 0.4 percent, and smallcap index fell 2.2 percent.
A long build-up was seen in SRG, Crompton Greaves Consumer Electrical, and Navin Fluorine International, while a short build-up was seen in Indiabulls Housing Finance, GNFC, and Can Fin Homes.
More than 250 stocks, including Wipro, Torrent Pharmaceuticals, Jindal Saw, Hindustan Zinc, Granules India, Aurobindo Pharma, Ashoka Buildcon, IDFC First Bank, and KEC International, touched their 52-week low on the BSE.
Among individual stocks, a volume spike of more than 400 percent was seen in Indiabulls Housing Finance, Aurobindo Pharma, and Gujarat Gas.
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Outlook for May 11
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets displayed volatility but moved in a range before ending lower, as investors pruned their holding in IT, telecom & automobile stocks. The lack of fresh positive cues is forcing investors to dump equities and switch to safer havens like gold, etc.
Although the larger texture of the market is still on the bearish side, we could see a sharp pullback rally in the near future due to markets being in an oversold territory.
For the traders, 16,000 would act as a sacrosanct support level and above the same, a pullback rally is likely to continue up to 16,300-16,400 levels. On the flip side, dismissal of 16,000 could increase further weakness up to 15,940-15,900.
Palak Kothari, Research Associate at Choice Broking:
The Nifty has formed a Hammer Kind of candlestick pattern on a daily chart which indicates value buying from lower levels. Moreover, Nifty has taken support from the lower band of Bollinger on a Four- hourly chart which is a sign of short-term reversal in the counter.
However, the momentum indicators RSI bounced from the oversold zone as well as divergence has been seen on an hourly chart which indicates bounce back momentum.
The Nifty may find support around 16,000 levels, while on the upside, 16,400 may act as an immediate hurdle for the Nifty, and crossing above the same can attract fresh buying. On the other hand, Bank Nifty has support at 33,800 levels while resistance is seen at 35,500 levels.
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