Market recovers early losses to end with marginal gains; mid small-caps fall

Representative image

Representative image

Benchmark indices recovered early losses and ended with marginal gains on June 14. At close, the Sensex was up 76.77 points or 0.15% at 52551.53, and the Nifty was up 12.50 points or 0.08% at 15811.90.

Adani group stocks lost 5-9 percent on reports pertaining to the freezing of three foreign funds by the National Securities Depository (NSDL) that own shares in four listed Adani firms.

But later in the day, the Adani group in its statement clarified that the Demat Account in which the foreign funds hold the shares of the company are not frozen.

“The Nifty has respected the 15700 level on a closing basis. Despite the crack in the first hours of trade, it has managed to claw back its losses and has closed well above the lows of the day. 15900-16000 continues to remain the next target for the index and as long as 15700 holds, traders have no reason to be concerned. A buy on dips is a prudent strategy to adopt at these levels of the market,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Among sectors, buying was seen in IT, energy and PSU banks, while metal, auto and banking names witnessed selling pressure. BSE Midcap and Smallcap ended in the red.

Tata Motors, Reliance Industries, Wipro, Divis Labs and Bajaj Finance were among the top gainers, while losers included Adani Ports, Coal India, Kotak Mahindra Bank, HDFC and Maruti Suzuki.

Stocks & sectors

On the BSE, power and realty indices lost 1.5-2 percent, while oil & gas and IT ended in the green.

Among individual stocks, a volume spike of more than 300 percent was seen in Adani Enterprises, Amara Raja Batteries and Adani Ports.

Long buildup was seen in Godrej Consumer, Power Grid and PNB, while short buildup was seen in DLF, Adani Ports and Voltas.

More than 450 stocks, including Coforge, Wipro, NBCC and Alkem Laboratories, hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a small-bodied bullish candle on the daily scale with a long lower shadow indicating declines are being bought in the market.

“The index has to hold above 15,750 zones to witness an up move towards 15,900 and 16,000 zones. On the downside support exists at 15,600 and 15,500 zones,” said Chandan Taparia of Motilal Oswal Financial Services.