Nifty ends below 15,700 dragged by auto, financials. Metal, realty stocks outshine

The market ended lower for the second consecutive day on July 9 amid selling in the auto and financial names. At close, the Sensex was down 182.75 points or 0.35% at 52,386.19, and the Nifty was down 38.10 points or 0.24% at 15,689.80.

For the week, Sensex and Nifty fell 0.2 percent each.

“The market continued to witness volatility at its recent swing low and stayed in the range between 15,650 and 15,750 (Nifty 50). The market’s short-term technical condition appears like consolidation after the recent correction witnessed yesterday. While it is subject to further price action evolution, the market suggests it is prudent to wait for a decisive breakout above 15,800 and technical factors to improve before going long in the market,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.

“The traders are advised to refrain from building a new buying position until market sees any further improvement and breakout above 15,800. The volatility to expand in today’s trading session, indicating a likely change of trend,” he added.

BSE midcap and smallcap indices rose 0.4-0.6 percent.

Bajaj Auto, TCS, HDFC Bank, Wipro and Reliance Industries were the top losers on the Nifty. Top gainers were Tata Steel, Bajaj Finserv, Adani Ports, Bharti Airtel and JSW Steel.

Stocks & sectors

On the BSE, metal and realty indices rose 2 percent each, while auto, capital goods, IT, oil & gas and bank indices ended in the red.

Among individual stocks, a volume spike of more than 200 percent was seen in Metropolis Healthcare, Bajaj Finserv and Torrent Pharma.

Long buildup was seen in Metropolis Healthcare, Bajaj Finserv and Mphasis, while short buildup was seen in Eicher Motors, Indian Hotels and Britannia Industries.

More than 350 stocks, including BAJAJ FINSERV, Just Dila, IRB Infrastructure Developers and Steel Strips Wheels, hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a doji sort of candle on daily scale as it closed near its opening levels but made a bearish candle on weekly time frame.

“Nifty has to cross and hold above 15750 zones to witness an up move towards 15850 and 15915 levels while on the downside support exists at 15600 and 15500 levels,” said Chandan Taparia, Vice President at Analyst-Derivatives.