Profit booking drags Nifty below 14,150, IT, FMCG packs underperform

Profit booking in IT and FMCG stocks dragged the indices from the record highs in morning trade. Nifty finished the day below 14,150 level. The BSE Sensex shed 263.72 points or 0.54% at 48,174.06, and the Nifty was down 53.20 points or 0.37% at 14,146.30.

“Market is experiencing volatility due to weak Asian market and profit booking owing to rich valuation. Banking stocks are supportive, led by good loan growth data for Q3FY21 announced by key private banks. In the near-term, trend of the broad market will depend a lot on FII inflows while stock specific actions will be based on Q3 result, which is about to pick up,” said Vinod Nair, Head of Research at Geojit Financial services.

The Nifty IT and FMCG indices shed 1 percent each, while Nifty metal index gained 1.3 percent.

Broader markets outperformed the main indices with BSE midcap index rising 0.4 percent and the smallcap index ending marginally lower.

ITC, Reliance Industries, Bajaj Finance, Axis Bank and HUL were among major losers on the Nifty, while gainers included Power Grid Corp, Shree Cements, GAIL, Hindalco and Grasim Industries.

Also Read – Gainers & Losers: 10 stocks that moved the most on January 6

Stocks & sectors

The BSE IT and FMCG indices fell more than 1 percent each. On the other hand, metal index added 2 percent and power index rose 1 percent.

A volume spike was seen in Power Grid, Tata Chemicals and Bharti Airtel.

Long buildup was seen in Bata India, HDFC AMC and Power Grid, while short buildup was seen in Aarti Industries, Info Edge and Lupin.

Over 450 stocks, including Infosys, Grasim Industries and Ashok Leyland hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a Bearish candle on daily scale but continued it formation of higher highs from the last ten trading sessions.

“Now it has to continue to hold above 14050 zones to witness a fresh rally towards 14400 then 14500 zones while on the downside major support exists at 14000 and 13900 levels,” said Chandan Taparia of Motilal Oswal Financial Services.