Market falls 1% on weak global cues; metals drag, PSU banks gain

The market ended lower for the second day in a row on May 12 amid weak global cues, with the Sensex ending 471.01 points, or 0.96 percent, lower at 48,690.80 and the Nifty closing 154.30 points, or 1.04 percent, down at 14,696.50.

On the sectoral front, the Nifty PSU bank index rose over 3 percent, while the Nifty bank, metal and energy indices fell 1-3 percent. BSE midcap and smallcap indices fell 0.6-0.9 percent.

The market will remain closed on May 13 on account of Eid-ul-Fitr.

“The Nifty has pierced 14,700 during the intra-day session and managed to close around it. Hence, traders would need to review the situation on Friday. If we are unable to hold this level, we could drop to 14,400. On the upside, if we can get back above 14,850, the index can scale up to 15,000 and then 15,200,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Tata Steel, Hindalco Industries, JSW Steel, IndusInd Bank and HUL were among the top losers on the Nifty. Gainers included Tata Motors, Titan Company, Maruti Suzuki, Power Grid Corp and UPL.

Stocks & sectors

On the BSE, except auto all other sectoral indices ended in the red, with metal, bank and oil & gas indices shedding 1-3 percent.

Among individual stocks, a volume spike of more than 100 percent was seen in Godrej Consumer Properties, Amara Raja Batteries and PVR.

A long buildup was seen in Godrej Consumer Properties, Cadila Healthcare and Siemens, while a short buildup was seen in Voltas, Cummins India and Granules.

More than 300 stocks, including BHEL, Siemens and South Indian Bank, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a bearish belt hold candle and started to form lower highs- lower lows from the last two trading sessions.

“The Nifty has to cross and hold above 14,750 zones to witness stability and an up move towards 14,900 then 15,000 zones, while on the downside support exists at 14,600 and 14,500 zones,” said Chandan Taparia of Motilal Oswal Financial Services.