On Thursday, the market witnessed huge volatility due to the monthly expiry of Sensex derivatives. Heavy selling pressure was seen in the market ahead of the long weekend. Sensex closed at 76,913 with a fall of 582 points. Nifty closed at 23,997 with a fall of 180 points. Bank Nifty closed at 54,863 with a fall of 540 points. The rupee weakened by 6 paise and closed at 94.91 against the US dollar. The special thing is that the rupee closed at its lowest level ever against the dollar.
Although the market managed to recover from its intraday lows before closing, a look at the intraday fall shows that the Sensex had fallen by almost 1,000 points to reach the level of 76,258. Nifty fell by more than 300 points to hit an intraday low of 23,796. Bank Nifty also witnessed huge weakness today, and the index reached an intraday low of 54,440.
Mid-cap and small-cap stocks also remained under pressure today. The Nifty Mid Select index fell 106 points to close at 13,826, while the Nifty Smallcap index fell 86 points to 18,007. On the sectoral front, maximum weakness was seen in auto, PSU bank and metal sectors. The Nifty Auto index fell 1.8%, the PSU Bank index fell 1.5%, and the Metal index slipped 1.25%. However, the pharma sector showed some strength, and the index rose 0.4%.
Today’s Top Losers and Gainers
In the Nifty 50 index, Bajaj Auto was the top gainer, rising nearly 5%. Besides, Sun Pharma(up 1.7%), Bajaj Finance(up 1.7%), and Infosys(up 1.2%) closed in the green. On the other hand, Eternal (down 2.9%), Tata Motors PV (down 2.9%), HUL (down 2.7%), and Tata Steel (down nearly 2%) were among the biggest losers.
Selling pressure was particularly high in metal stocks. NALCO witnessed a sharp decline of 8.5%, while Vedanta fell 6%, Hindalco 3%, and Hindustan Zinc fell 3%. Weak earnings results and profit-booking had a huge impact on the sector.
Share prices also saw a lot of movement in response to companies’ earnings results. Syngene International rose 8%, while Waaree Energies dropped 10%. KFIN Tech fell 7.75%, and NALCO dropped 6%.
In the Nifty 500 pack, MTAR Tech emerged as the biggest gainer, rising 14%. Besides, Inventurus Knowledge (up 6.22%), DCM Shriram (up 5.38%), and Newgen Software (up 5.33%) closed with strong gains. In contrast, HEG and Indian Metals fell about 9% each, while Edelweiss dropped 7.5%. MOIL also remained under pressure.
Why was such a huge decline seen in the market today?
– Market mood deteriorated due to increase in crude oil prices.
– An atmosphere of caution remained in the market before the long weekend.
There was an atmosphere of anticipation in the market regarding the results of the upcoming assembly elections.
– Interest rate sensitive stocks further increased the selling pressure.
– Weakness in mid-cap and small-cap segments further worsened the market mood.
Rupee reached its lowest level ever against dollar.
– Considerable weakness was seen in Dow Futures.
– India VIX made a strong comeback from its low levels.
What caused the slight recovery in the market?
– Nifty did not break the important support level of 23,800, nor did Bank Nifty break the level of 54,400.
– A strong rise was seen in June futures of crude oil.
– However, July futures remained near yesterday’s $112 level.
This means that crude oil remains almost as weak today as it was yesterday.
– The data of buying and selling of FII and DII remained sluggish. – Due to the monthly expiry of Sensex, there were fluctuations in the market.
– Ahead of the long weekend, the market was supported by light short-covering and buying at lower levels.
Rupee recovered slightly from its low levels.
Which levels should be monitored now?
Nifty 23775-23900, Bank Nifty 54150-54450: Strong support zone
– Nifty 24000, Bank Nifty 55000: Pivotal levels
– Nifty 24050-24175, Bank Nifty 55275-55400: Upper Level
If Nifty closes below 23900 and Bank Nifty closes below 55100, the weakness may increase further.
Stocks in Action
KFin Tech:
– Stocks fall sharply after weak earnings results.
– In the morning’s ‘Result Review’ it was clearly said that KFin Tech would prove to be ‘today’s accident’.
Available Energies:
– Stocks fall as results report weak margins.
– A ‘Sell’ recommendation was issued during the morning ‘Result Review’.
This stock was featured during the morning’s ‘Opening Heroes’ segment.
Shri Ram Fin:
– Despite the strong earnings results, a strong ‘Contra Sell Call’ was issued the day after the results were announced.
There is constant pressure on the stock.
Motilal Oswal:
– At first glance the results did not look that great.
– However, we clearly stated that the stock will rise on the back of strong operating profits.
– The biggest gainer stock in F&O today.
Bajaj Finance:
– A ‘Buy’ recommendation was issued during the morning ‘Result Review’; All targets achieved.