Sensex ends with marginal losses after hitting all-time high; banks outperform

Market erased intraday gains and ended with marginal losses July 6 dragged by auto, IT, metal and pharma names. At close, the Sensex ended lower by 18.82 points or 0.04% at 52861.18, and the Nifty was down 16.10 points or 0.10% at 15818.30.

Sensex touched the fresh record level of 53,129.37, while Nifty50 reached closer to its record level of 15,915.65 on an intraday basis.

“Market witnessed some strong trend and an attempt to overcome the resistance level around 15900. While sustaining above 15900 is the key factor from a short-term perspective. Market suggests maintaining above this level is important to gain momentum and extend the rally until 16200,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.

“The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook,” he added.

BSE midcap index ended marginally higher, while smallcap index fell 0.26 percent.

UltraTech Cement, Shree Cements, HDFC Bank, Bajaj Finance and Bajaj Finserv were among the top gainers on the Nifty. Top losers were Tata Motors, Gland Pharma, Tech Mahindra, TCS and Coal India.

Stocks & sectors

On the BSE, IT and auto indices shed 1-1.8 percent. Selling was also seen in FMCG, metal, realty and healthcare stocks. However, bank, capital goods and power indices ended in the green.

Among individual stocks, a volume spike of more than 700 percent was seen in Tata Motors, AU Small Finance Bank and Ambuja Cements.

Long buildup was seen in Dr. Lal PathLabs, Bajaj Finance and Godrej Properties, while short buildup was seen in NMDC, Tata Motors and Biocon.

More than 500 stocks, including Steel Strips Wheels, Oil India, Jyothy Labs, Suzlon Energy, Indowind Energy and HCC, hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a bearish Doji candle with a long upper shadow on the daily scale which indicates that follow up is missing at higher zones

“Nifty has to hold above 15,800 zones to witness an up move towards 15,915 and 16,000 zones, while on the downside support can be seen at 15,700 and 15,600 zones,” said Chandan Taparia of Motilal Oswal Financial Services.