Selling in banking and IT names at the fag end of the day pushed benchmark indices lower on July 12. Cautiousness was also seen ahead of earnings announcements of key IT companies.
Ahead of the close, indices remained range bound for most of the day. Broader market indices fared better and closed with gains. However, some stocks were negatively affected by changes in GST tax rates.
The Nifty 50 index fell 55.10 points or 0.28 percent to close at 19,384.30. BSE flagship Sensex declined 0.34 percent or 223.94 points to 65,393.90.
“The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend,” Nair noted.
Stocks and sectors
In the Nifty 50 club, ONGC was the top gainer, rising nearly 2 percent, followed by Eicher Motors that rose further 1 percent. Other gainers were Nestle, Kotak Mahindra Bank and SBI Life Insurance, among others.
Adani Enterprises was the biggest loser, down over 1 percent. Tata Motors, UltraTech Cement, Infosys and Adani Ports were other losers that lost more than a percent each.
Among sectoral indices, Nifty PSU Bank, Nifty and Nifty Media were among the top gainers. Nifty IT was the top loser for the day.
OUTLOOK for July 13
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
We expect the market to remain in consolidative mode with support at lower levels. Investors would react to the domestic and US CPI data that would be released today. TCS and HCL Tech results would give cues for other IT majors. Auto, PSU Banks, Pharma, building material, and defence sector stocks could continue to see positive momentum.
Devarsh Vakil, Deputy Head - Retail Research, HDFC Securities
A band of 19300-19523 is the important range to be tracked for the coming days. Any level above 19523 would resume an uptrend, while level below 19300 could lead to correction.
Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
The bears continue to dominate the market, as the index broke below the support level of 44800. This suggests a bearish sentiment in the index. The next support level on the downside is located at 44500 levels. If the index dips towards this level, it may present an opportunity for traders to initiate long positions, expecting a potential bounce from this support. On the upside, the immediate hurdle is at 45000, where the highest open interest is observed on the call side. This level may act as resistance for the index.
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