Sensex, Nifty slip again on profit booking, PSU banks take a hit

The market ended lower for the fourth consecutive day on February 19, with the Nifty slipping below the crucial 15,000 and the Sensex below the 51,000-mark. At close, the Sensex was down 434.93 points, or 0.85 percent, at 50,889.76, and the Nifty was down 137.20 points, or 0.91 percent, at 14,981.80.

“The index closed the week on a negative note at 14,982 with loss of more than one percent and formed a bearish engulfing kind of candle pattern on weekly chart which represents trend reversal. As the index managed to breached its strong support of the 15k mark, which will acts as an immediate resistance now, so above the 15k mark, we may see some relief otherwise we may see more downside levels of 14,900-14,750 on the other hand 15,100-15,170 will act as a strong hurdle on the higher side,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

All sectoral indices ended in the red with the PSU bank index down 4.7 percent, while the auto, bank, infra, metal and pharma indices shed 1-2 percent.

Broader markets mirrored the benchmarks, with BSE midcap and smallcap indices falling 0.7-1.6 percent.

“Consolidation continued as increasing volatility and weak global cues influenced investors to stand on the sidelines, leading the market to close below 15k level. Sentiments across the globe were also wounded by increasing bond yield, higher commodity price and the disappointing US data,” said Vinod Nair, Head of Research at Geojit Financial Services.

ONGC, Hero MotoCorp, Tata Steel, SBI and Tata Motors were among the major losers on the Nifty, while the gainers were UPL, IndusInd Bank, Dr Reddy’s Labs, GAIL and HUL.

Stocks & sectors

On the BSE, auto, bank and metal sectors shed 2 percent each. Realty, oil & gas and healthcare indices fell 1 percent each.

A volume spike of more than 100 percent was seen in Punjab National Bank, Grasim Industries and JSW Steel.

Long buildup was seen in IndusInd Bank, IDFC First Bank and Cholamandalam Financial Holdings, while short buildup was seen in Grasim Industries, Cummins and JSW Steel.

More than 200 stocks, including Bank of Maharashtra, Jubilant FoodWorks and IDFC First Bank, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a bearish candle on the daily scale and a bearish engulfing candle on the weekly scale.

It continues its formation of lower highs-lower lows of the last three trading sessions.

“Till the Nifty remains below 15,150 zones, weakness could continue towards the next key support of 14,800 and 14,700 zones, while on the upside, hurdles are seen at 15,250 and 15,400 zones,” said Chandan Taparia of Motilal Oswal Financial Services.

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