Nifty ends lower for 2nd straight day amid profit-booking; metal, bank stocks underperform

Benchmark indices witnessed profit-booking for the second consecutive session on June 29. At close, the Sensex was down 185.93 points or 0.35% at 52,549.66, and Nifty was down 66.20 points or 0.42% at 15,748.50.

Domestic markets remained weak in line with Asian markets as sentiment remained muted amid rising infections of delta variant of the coronavirus and the re-imposition of restrictions in parts of Asia, Europe, South Africa, and South America

Besides, geopolitical risks also weighed as India deployed additional 50,000 troops along the China border, said Arijit Malakar, Head of Research Ashika Stock Broking.

The Centre announced eight new schemes to give a boost to the sectors reeling under the Covid-19 induced restrictions, however, barring pharma and FMCG, all other sectors remained in the red, he added.

Among sectors, except FMCG and Pharma, all other indices ended in the red with Nifty Bank, metal, auto and PSU Bank dropping 1 percent each. BSE Midcap ended 0.4 percent lower, while Smallcap index ended flat.

IOC, ONGC, Hindalco, Kotak Mahindra Bank and Coal India were among top losers on the Nifty. Top gainers included Power Grid Corp, Cipla, HUL, NTPC and Divis Labs.

Stocks & sectors

On the BSE, auto, bank, metal and oil & gas indices slipped 1 percent each, while buying was seen in the FMCG and healthcare indices.

Among individual stocks, a volume spike of more than 500 percent was seen in Marico, Bharat Forge and Godrej Consumer Products.

Long buildup was seen in Power Grid, Au Small Bank and Marico, while short buildup was seen in HDFC Life, Apollo Tyres and Coromandel International.

More than 400 stocks, including Pidilite Industries, Marico, Balrampur Chini Mills and Ajanta Pharma, hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a small-bodied bullish candle on the daily scale and gave the second-highest ever daily close.

It formed a bearish candle and negated its higher lows formation of the last three sessions.

“The index has to hold above 15,700 zones to witness an up move towards 15,900 and 16,000 zones, while on the downside support can be seen at 15,600 and 15,500 zones,” said Chandan Taparia of Motilal Oswal Financial Services.