The Indian equity market erased previous session gains and ended lower in a volatile session on June 22 with Sensex ending 284.26 points or 0.45 percent lower at 63,238.89, while Nifty fell 85.50 points or 0.45 percent at 18,771.30.
Despite a negative start, Nifty again inched closer to a record high of 18,887.60, while Sensex made a new high of 63,601.71 in the early session. However, the market witnessed profit booking in the second half amid selling across the sectors.
Stocks and sectors
Top losers on the Nifty included Tata Steel, Bajaj Finance, Tata Consumer Products, Tata Motors and Asian Paints, while gainers were Divis Laboratories, L&T, HDFC, HDFC Bank and Bharti Airtel.
All the sectoral indices ended in the red with PSU Bank and Power losing 1 percent each, while oil & gas, metal, FMCG, pharma and information technology were down by 0.5 percent each.
The BSE midcap index shed 1 percent and smallcap index fell 0.6 percent.
A short build-up was seen in India Cements, Aditya Birla Capital and IDFC First Bank, while a long build-up was seen in Motilal Oswal Financial Services, Balrampur Chini Mills and Polycab India.
Among individual stocks, a volume spike of more than 5000 percent was seen in Indiabulls Housing Finance, India Cements, Glenmark Pharma.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 81,425.15 | 323.83 | +0.40% |
| Nifty 50 | 24,973.10 | 104.50 | +0.42% |
| Nifty Bank | 54,536.00 | 319.90 | +0.59% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Bharat Elec | 388.05 | 16.10 | +4.33% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| M&M | 3,604.40 | -91.90 | -2.49% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 36183.80 | 927.90 | +2.63% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 26833.95 | -348.55 | -1.28% |
L&T, Apollo Tyres, Bank of Baroda, Gayatri Sugars, Hindustan Oil Exploration, Sansera Engineering and Texmaco Rail & Engineering among stocks which touched their 52-week high on the BSE.
Outlook for June 23
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Apart from weak global market cues, the US Federal Reserve's testimony that inflation would take longer to cool sent jitters amongst the investors as this would mean more rate hikes are in the offing. However, the highlight of the day was Sensex once again touching a new high before giving up gains due to profit-taking.
Technically, on intraday charts, the Nifty has formed a double top formation and also formed a bearish candle on daily charts which is largely negative. For day traders, 18850 would be the immediate resistance level. Below which, the market could retest the level of 18700-18650. On the flip side, a fresh uptrend rally is possible only after the dismissal of 18850. Post the breakout, the Nifty is likely to rally till 18900-18935.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty witnessed a volatile day of trade today. It opened on a positive note however faced selling pressure at higher levels and closed in the red down ~ 85 points. On the daily charts, we can observe that the Nifty has been facing stiff resistance at the zone of 18870 – 18900. Despite multiple attempts, it has been unable to surpass it.
The hourly momentum indicator has a negative crossover which is a sell signal and could be the reason for the weakness in the Nifty. On the downside the Nifty is trading around the key hourly moving averages 18808 – 18783 which can act as a support. The Bollinger bands are contracting indicating that there could be more consolidation before it resumes trending moves. Overall, we continue to maintain our positive outlook on the index for targets of 19000. In terms of levels, 18700 – 18660 shall act as a crucial support zone while 18880 – 18900 shall act as a crucial resistance zone.
As far as Bank Nifty is concerned, the 20-day moving average of 43976 acted as a stiff resistance and the index was unable to surpass it. The Bank Nifty is still stuck in a range and until the zone of 44000 – 43500 is not decisively breached on either side, the range-bound action is likely to continue.
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