Market recovers from day#39;s low to close flat; metal, power, financial stocks take a hit

On a day of volatile trade, the market managed to erase intraday losses to end flat amid volatility. The Sensex, which recovered around 800 points, closed 21.12 points, or 0.04 percent, higher at 52,344.45, while the Nifty closed 8 points, or 0.05 percent, lower at 15683.40.

“The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 index level of 15600. The market expects 15,600 will act as a support and the technical factors seem aligned to support a sideways correction. Further, it is likely to continue for a few more trading sessions before the market resumes its upside momentum again,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.

For the week, the Nifty50 and the Sensex lost 0.7 percent and 0.2 percent, respectively, their fast weekly fall in five weeks.

On the sectoral front, except FMCG, all other indices ended in the red with energy and PSU bank indices shedding 1-2 percent. BSE midcap and smallcap indices fell 0.7 percent and 0.9 percent, respectively.

ONGC, Coal India, NTPC, UPL and JSW Steel were among major losers on the Nifty, while top gainers included Adani Ports, HUL, Bajaj Auto, Bharti Airtel and Grasim Industries.

Stocks & sectors

On the BSE, metal, power and oil & gas indices fell 1.7-2.7 percent, while the FMCG index ended in the green.

Among individual stocks, a volume spike of more than 300 percent was seen in Nalco, Dr. Lal PathLabs and Divis Lab.

Long buildup was seen in Mphasis, Sun TV Network and Cadila Healthcare, while short buildup was seen in ONGC, Divis Lab and Nestle.

More than 350 stocks, including Parsvnath Developers, Infosys, Marico and Khadim India, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a bearish candle on a daily scale but the presence of a long lower shadow indicates that declines were quickly bought.

“The index has to hold above 15,600 zones to witness an up move towards 15,800 and 15,900 zones, while on the downside, support can be seen at 15,500 and 15,450 zones,” said Chandan Taparia of Motilal Oswal Financial Services.