On a volatile day, more than 500 stocks hit 52-week low

After hitting a 1-month low in intraday trade, Nifty managed to bounce back from lower levels and but closed virtually unchanged towards the close of the trade on June 19. Sensex rallied over 60 points.

The final tally on D-Street – Sensex rose 66 points to 39,112 while the Nifty closed flat at 11,691.

Even though benchmark indices closed flat-to-higher, carnage was seen in individual stocks largely from the broader market space. The S&P BSE Midcap and Smallcap both ended with losses of 0.7 percent and 1.4 percent, respectively.

More than 500 stocks on the BSE hit their fresh 52-week low including Jain Irrigation, Jet Airways, Reliance Capital, Aksh Optifibre, Bosch, HEG, CARE Ratings, Indiabulls Housing Finance, Yes Bank, Lupin and TTK Healthcare, among others.

Most technical analysts remain cautious on Indian markets around these levels and advise investors or traders to avoid leverage play. Indian market failed to move high despite strong global cues which might be a concern if Nifty fails to hold 11,600.

The outcome of the FOMC meeting, rise in crude oil prices, delay in monsoon, and mounting pressure on NBFC names are some of the factors which weighed on markets, suggest experts.

“Despite global trade optimism, the domestic market failed to hold the opening gains due to concern over weakening economic data, lack of liquidity and deficit in monsoon,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“The earnings growth is likely to be downgraded further given the deteriorating situation. Seems that market will have to wait till the full Budget that could be the testimony of the new plan,” he said.

Sectorally, the S&P BSE Realty index rose 1.2 percent, followed by the Consumer Durable index that was up 0.87 percent, and the Metal index gained 0.55 percent.

Technically, Nifty formed a bearish candle on the daily charts that also resemble a ‘High Wave’ kind of candlestick pattern.

Nifty, which opened with a gap on the higher side, failed to hold on to the gains and observed selling at higher levels that suggest we are in a sell-on-rise kind of market.

On the way down, the index breached June 18 low but recovered to some extent towards the end and closed flat. The index has been defending its 50-days exponential moving average on a closing basis which is a positive sign.

Going forward, if Nifty sustains above 50-day EMA then we could see a pullback towards 11,800-11,920, suggest experts. Traders are advised to avoid shorting the index at current levels, they say.

Stocks in news:

Shares of IRB Infrastructure Developers fell nearly 11 percent after a media report indicated that there could be a new operator for Mumbai-Pune Expressway.

Yes Bank shares fell 5.5 percent amid worries over its exposure to debt-laden companies. Yes Bank market cap is now 2nd lowest in the Nifty. The stock touched 5-year low today.

Blue Star gained 3 percent after receiving an order from Mumbai Metro Rail.

Jammu & Kashmir Bank tanked 7 percent after a media report indicated that former chairman residence has been raided by the ACB.

Indiabulls Group stocks closed 2-9 percent lower.

NBFC names remained under pressure; DHFL, Manappuram & Piramal slipped 3-7 percent

Global update:

European markets are trading flat ahead of US Federal Reserve decision on interest rates.

However, Asian markets ended higher on the back of overnight developments on the US-China trade. Shanghai Composite added 0.96 percent to 2,917.80 and Hang Seng rose 2.5 percent at 28,202.14.

Kospi jumped 1.24 percent at 2,124.78 and Nikkei gained 1.7 percent at 21,333.87.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.