Market fall continues, Nifty below 15,700; pharma, auto outshine

Benchmark indices continued their losing trend for the fourth day, with the Nifty ending below 15,700 on July 1. At close, the Sensex was down 164.11 points, or 0.31 percent, at 52,318.60, and the Nifty closed 41.50 points, or 0.26 percent, lower at 15,680.

“The market witnessed yet another volatile session in a small range of 15,680-15,750. The market suggests trading above the support zone of 15,680-15,700 is positive from a short-term perspective,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.

If the market sustains above 15750, a recovery to 1,5900 can be expected, he said.  “The technical indicator suggests, a volatile movement in the market in the range of 15650-15900,” Biswas said.

Traders should refrain from building a fresh buying position, until a further decisive movement is seen in the market, he said.

Among sectors, auto, FMCG, pharma and PSU bank ended in the green, while selling was seen in the energy, bank, metal, infra and IT names. BSE midcap ended marginally lower, while smallcap index was up 0.3 percent.

Bajaj Finserv, Gland Pharma, Shree Cements, Britannia Industries and Infosys were among the top losers on the Nifty. Top gainers were Dr Reddys Labs, Hindalco Industries, Bajaj Auto, Tata Motors and Sun Pharma.

Stocks & sectors

On the BSE,  selling was seen in bank, capital goods, IT, power and realty stocks, while auto, FMCG and healthcare indices ended higher.

Among individual stocks, a volume spike of more than 300 percent was seen in Info Edge, Dabur India and Dr Reddy’s Laboratories.

Long buildup was seen in Dabur, Info Edge and SRF, while short buildup was seen in Power Finance Corporation, Cholamandalam Investment and Finance Company and Escorts.

More than 400 stocks, including Steel Strips Wheels, Shree Renuka Sugars, Persistent Systems, Mindtree and Dr Reddy’s Laboratories, hit a fresh 52-week high on the BSE.

Technical View

The bears appear to be slowly tightening their grip over the indices, as the Nifty closed below its seven-day-old minor consolidation zone present between 15,900 and 15,700, said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.

For the time, traders are advised to remain short and look for a target of 15,550 with a stop above 15,700 on a closing basis, he added.