Market falls for 5th day in row; Nifty ends below 13,850

Indian indices fell for the fifth consecutive session on January 28 on the back of negative global cues amid investors booking profits at higher levels ahead of Union Budget. At close, the Sensex was down 535.57 points or 1.13% at 46,874.36, and the Nifty was down 150 points or 1.07% at 13,817.50.

“Index closed a day on a negative note for the fifth consecutive session at 13,825 with loss of one percent and formed a Doji candle pattern on the daily chart which suggest some reversal may be expected in coming sessions,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

“The index has formed a good base near 13,800-13,700 zone, if it manages to hold above the said levels then we may see a swift pullback in Nifty towards 13,900-14,000 zone which is now immediate hurdle on the higher side,” he added.

Nifty IT index shed 2 percent, while auto, FMCG and PSU bank fell 1 percent each. Nifty Bank index ended with marginal gains.

Broader markets outperformed the main indices with BSE Midcap and Smallcap indices falling 0.4 percent each.

HUL, Maruti Suzuki, Wipro, HDFC Bank and Power Grid Corp were among major losers on the Nifty, while gainers were Axis Bank, SBI, Shree Cements, IOC and Hero MotoCorp.

Stocks & sectors

On the BSE, except bank other sectoral indices ended in the red with realty and IT index down 2 percent each and auto and FMCG indices falling 1 percent each.

A volume spike of more than 100 percent was seen in SAIL, NALCO and PNB.

Long buildup was seen in Axis Bank, NTPC and Pidilite Industries, while short buildup was seen in Maruti Suzuki, HUL and Ambuja Cements.

Over 100 stocks including Cosmo Films, Havells and ABB hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a Doji candle on the daily scale after four consecutive bearish candles indicating tug of war between the bulls and bears with some support zones.

The index may continue to remain highly volatile ahead of the Union Budget 2021.

“Now, till it remains below 14000 zones, bounce could be sold and weakness may be seen towards 13,700 and 13,500 levels while on the upside key hurdle exists at 14,000 and 14,200 levels,” said Chandan Taparia of Motilal Oswal Financial Services.