Indian equity benchmarks fell sharply on Wednesday, halting their winning run of two consecutive sessions. The domestic equity benchmarks slumped today, dragged by index heavyweight Reliance Industries, HDFC twins (HDFC and HDFC Bank) and Infosys. At closing, the 30-pack Sensex was down 637 points or 1.04 per cent at 60,657. The NSE benchmark was down 190 points or 1.04 per cent to settle at 18,043. On the sectoral front, banking, metal, energy and technology stocks took a beating. Fears over aggressive rate hikes resurfaced ahead of the release of Fed meeting minutes, a meeting that left the door open for additional hikes, said Vinod Nair, Head of Research at Geojit Financial Services. Apart from global cues, the domestic market would pay close attention to corporate earnings, he added.
Here are 10 things you should know ahead of Thursday’s session:
Nifty Outlook
“Bears remained at the helm, taking Nifty about 190 points lower from the previous closing. On the 4-hourly chart, the index has given an upward consolidation breakdown; besides, the shorter moving average (21 EMA) finished the day lower than the longer moving average (50-EMA), confirming the bearish scenario. With the momentum indicator RSI (14) remaining in a bearish crossover, the trend and momentum of the price suggest a rise in bearish bets in the market. Further declines are possible in the future that may bring the index down to 17,950. Again, below 17,950, the index may slip to 17,800 and lower. On the higher end, 18,155–18,200 may act as immediate resistance, above which the bulls may gain strength,” said Rupak De, Senior Technical Analyst at LKP Securities.
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Nifty Bank Outlook
“Nifty Bank index witnessed a false breakout on the upside and the bears hammered the market throughout the day. The index tested the support of 43,000 and now a follow-up selling move is required to continue the downtrend towards the 42,500-42,00 zone which will act as make or break level for the bulls. The undertone remains bearish and one should keep a sell-on-rise approach with immediate resistance at the 43,400-43,500 zone,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
Nifty Call-Put Open Interest (OI)
In the options segment, the highest OI was seen on the call side at 18,200, followed by 18,300 strike prices, while the highest OI was seen on the put side at 18,000, followed by 17,900 strike prices,” said Ameya Ranadive, Equity Research Analyst, Choice Broking. Nifty Bank, on the other hand, has support at 42,800 levels and resistance at 43,500, Ranadive added.
Nifty Bank Tech Charts
“Formed a Bearish candle and a Bearish Engulfing pattern on daily scale. Now it has to cross and hold above 43,034 zones, for an up move towards 43,250 and 43,400 levels while on the downside support exists at 42,750 and 42,500 zones,” said Chandan Taparia of Motilal Oswal Securities.
Futures Data
“Nifty future closed negative with losses of 1.17 per cent at 18,102 levels. Positive setup in GNFC, Havells, Shree Cement, Hindustan Petroleum Corporation, Abbott India, MFSL, Chambal Fertilisers & Chemicals, ICICI Pru and HDFC Life while weakness in JSW Steel, Hindalco, Torrent Power, Coal India, Trent, ATUL, Gujarat Gas, Naukri, Indus Tower, PEL, DLF, HAL, PowerGrid, Tata Motors, Navin Fluorine and ABFRL,” Taparia said.
European Stocks
European stock indices such as the German DAX, Euro Stoxx 50, France’s CAC and Spain’s IBEX 35 were last seen trading higher. Further, US stock futures indicated a higher start for Wall Street.
Most Active Stocks
Yes Bank, Vodafone Idea, Suzlon, PNB, IRFC, Indian Overseas Bank, Bank of Maharashtra, South Indian Bank, Tata Steel and Zomato were the most active stocks on NSE, in terms of volume.
Oil Prices
Oil prices extended their fall today as Brent crude futures slipped to trade around $80 per barrel. Lower oil prices benefit oil-importing countries like India, where crude constitutes the bulk of the country’s import bill.
52-Week High/Low
93 stocks touched their respective 52-week high today on BSE, while 27 hit their one-year lows. BSE 500 stocks such as Axis Bank, Equitas Small Finance Bank and General Insurance Corporation of India hit their one-year high levels today, while AAVAS Financiers and Galaxy Surfactants touched their 52-week lows.
Market Breadth
The market breadth stood weak as 2,351 stocks declined and 1,136 stocks advanced.
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