After a sharp rally in the previous session, the Indian equity benchmarks saw profit booking on April 5 amid selling in financial names, including HDFC twins. Buying in auto, power and FMCG, however, capped the losses.
At close, the Sensex was down 435.24 points, or 0.72 percent, at 60,176.50, and the Nifty was down 96 points, or 0.53 percent, at 17,957.40.
"The Nifty remained sideward during the session. On the higher end, it found resistance around the previous high before ending the session in the red. However, the Nifty has managed to close above 200-DEMA, indicating a prevailing positive trend," said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, 18,150 may continue to remain an immediate resistance, on the lower end, support is visible at 17,800, he added.
HDFC Bank, HDFC, Bajaj Finserv, Reliance Industries and Kotak Mahindra Bank were among the top Nifty losers. Adani Ports, NTPC, Tata Motors, Power Grid Corporation and Tata Consumer Products were the top gainers.
Among sectors, Nifty Auto, FMCG and Energy indices gained 1 percent each, while Nifty Bank index fell 1 percent.
Stocks and sectors
On the sectoral front, auto, FMCG and power indices rose 1-3 percent, and capital goods, oil & gas and healthcare indices gained 0.5 percent. On the other hand, the bank index was down 1 percent.
The broader market outperformed the frontliners, with BSE midcap and smallcap indices adding more than a percent each.
A long build-up was seen in Tata Power, Polycab India and Havells India, while a short build-up was seen in the Federal Bank, SBI Cards and HDFC Bank.
More than 150 stocks, including Vedanta, Sun Pharma, Power Grid and JSPL, touched their 52-week high on the BSE.
Among individual stocks, a volume spike of more than 300 percent was seen in SBI Cards, Dixon Technologies and Polycab India.
Outlook for April 6
Palak Kothari, Research Associate, Choice Broking
After a positive opening, the benchmark index traded with a negative bias for the whole day and saw profit booking from higher levels.
The Nifty closed at 17930.75, with a loss of 0.53 percent, while the Bank Nifty settled at 38,067.90, down 1.47 percent.
Technically, the Nifty faced resistance from 18100 levels and showed downside momentum but it managed to close above its 50-day simple moving average (SMA).
The index has taken the support from the previous horizontal line and closed above the same which indicates buyers are quite active. However, the momentum indicator MACD traded with positive crossover on the daily charts, which indicates upside movement.
The index has managed to close above 21 and 50-HMA and if it holds above these, it can head north. The Nifty may find support around 17,800, while on the upside 18,150 may act as an immediate hurdle.
The Bank Nifty has support at 37,700, while resistance is at 38,700.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
With the recent rally, the Nifty reached its daily upper Bollinger band as well as a falling trendline drawn from the October high.
These parameters maintained pressure for the second consecutive day. As a result, the index formed a distribution triangle on the hourly chart below these hurdles and moved lower towards the end of the session.
On the daily chart, the Nifty formed an inside bar pattern. This shows loss of momentum on the upside. Thus the index looks set for a minor dip before moving higher.
On the downside, the Nifty can fill the recent gap area on the daily chart, which is near 17,790-17,700. On the higher side, 18,100-18,200 will continue to be the key resistance zone.
Ajit Mishra, VP-Research, Religare Broking
Markets took a breather after the previous day’s surge to end marginally lower.
After a flat start, the benchmark hovered in a range and ended around the day’s low. Sectoral indices traded mixed, while profit booking in banking and financials dragged the indices lower. Buying in power, consumer durables and FMCG packs capped the downside.
The broader indices were up in the range of 1.5-1.6 percent.
Markets may consolidate after the recent surge and it would be healthy. However, there’ll be no shortage of trading opportunities, thanks to scheduled events like MPC’s monetary policy review meet and the beginning of the earnings season.
Participants should focus on the sectors and themes that are playing out well and utilise the pause to accumulate quality stocks on dips.
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