Bears take control of D-St; Sensex gives up 38,000, Nifty below 11,200

Not the best way to head into the Independence Day weekend, as the market on Friday wiped out the gains made through the week.

The S&P BSE Sensex plunged 433 points to 37,877 while the Nifty50 dropped 122 points to close at 11,178. On a weekly basis, the Sensex fell 0.4 percent while the Nifty50 was down 0.3 percent.

Weak global cues, profit-booking at higher levels, uncertainty over US-China’s trade meeting and dimming hopes of a rate cut after a rise in inflation in July capped the upside for the bulls, say experts.

“Indian markets tracked weak global cues in the later part of the trading day to end with losses. The uncertainty was with regards to the US-China trade meet this weekend and a lack of wholesome pickup in economic activity in many countries, including China,” Vinod Nair, Head of Research at Geojit Financial Services told .

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The Indian retail inflation numbers that were above the MPCs’ target also put in doubt chances of a rate cut by the RBI, which the market was looking forward to, he said. Weak results, especially in the auto sector, also contributed to the losses.

Sectorally, action was seen in healthcare, metals, and consumer durable names, while profit-taking was visible in auto, banks, finance and oil & gas stocks.

On the broader markets front, the S&P BSE midcap index was down more than 1 percent while the smallcap index fell 0.5 percent.

Top Nifty gainers included Sun Pharma, Coal India and JSW Steel.

Top Nifty losers included Axis Bank, Tata Motors, and Eicher Motors.


Stocks & Sectors

Sectorally, action was seen in the S&P BSE Metal index that was up 0.7 percent followed by the healthcare index that rose 0.75 percent and the consumer durables index was up 0.06 percent.

Selling pressure was seen in the S&P BSE auto index that was down 2.5 percent, followed by the Bankex that slipped 2.1 percent and the finance index dropped 1.8 percent.

A volume spike of more than 100 percent was seen in stocks like NTPC, Escorts, Siemens, and Lupin.

Long buildup was seen in stocks like Lupin, Cadila Healthcare and Tata Steel.

Short Buildup was seen in stocks like Eicher Motors, Voltas and MRF.

Alkyl Amines, APL Apollo, Balkrishna Industries, MindTree and Lupin were among more than 100 stocks on the BSE hit a fresh 52-week high.

Stocks in news

Telecom stocks ended mixed on August 14 as the Supreme Court was expected to deliver an order on an appeal by Vodafone Idea, Bharti Airtel and others to allow staggered payments of their adjusted gross revenue dues.

Eicher Motors stock was down over 7 percent after the company posted a weak set of numbers for the June quarter.

Elgi Equipments stock jumped over 9 percent after the board approved a bonus issue.

MRF stock price shed almost 4 percent after the company posted weak numbers for the June quarter.

Varroc Engineering stock slipped over 7 percent after the company reported a consolidated net loss at Rs 308.5 crore while revenue was down 55.6 percent at Rs 1,274.6 crore, CNBC-TV18 reported.

Shriram Transport Finance stock price shed over 2 percent after the company reported an almost 50 percent decline in consolidated net profit at Rs 320.06 crore in the first quarter ended June. It had posted a net profit of Rs 634.25 crore in the same quarter a year ago.

Technical View

The Nifty formed a bearish candle on the daily charts and a Spinning Top on the weekly charts which shows indecisiveness among the bulls and the bears

A close below 11,200 washed out the laborious gains of six sessions put together by the bulls, suggesting that the Nifty could be in the distribution phase before this breakdown.

“If the Nifty sustains below 11,366 levels, it shall ideally head towards 10,882 levels to complete one corrective structure of lower degree in terms of wave theory,” Mazhar Mohammad of said.

“Meanwhile upsides shall remain capped at around 11,370 levels. Hence, for the time being, positional traders are advised to make use of bounce if any to create fresh short positions with a stop above 11,370 levels and look for a bigger target of 10,882,” he said.