Domestic markets opened with slight gains on Monday, with Nifty and Bank Nifty managing to reach new highs. However, the market witnessed a decline after opening in the green. By around 2 pm, the benchmark indices had slipped from the day’s highs. Overall, there was a profit-booking environment throughout the day, with investors booking profits at life-time high levels. Nifty fell 78 points to close at 26,250, Sensex fell 322 points to 85,440 and Bank Nifty fell 107 points to 60,044. In the currency market, the rupee weakened by 8 paise to close at 90.28/$1.
Where did the decline and growth occur?
The market trend remained mixed in Monday’s trading. While midcap and smallcap indices showed strength, some major banking and IT stocks in Nifty 50 saw selling pressure. The Midcap Select index closed 0.55% higher at 13,984, while the Smallcap 100 index showed even stronger strength, rising 0.60% to 17,938.
HDFC Bank was the top loser in the Nifty 50, falling about 2.4%. Key IT sector shares also remained under pressure, with Wipro, Infosys and HCL Tech falling around 1.8% to 1.9%. In terms of gains, defense sector’s BEL led the way, rising by about 2.9%. Besides, Nestle India gained 2.6%, Eicher Motors gained 2% and Asian Paints gained about 1.7%.
Impact of Q3 update
Big fluctuations were seen in some stocks after the quarterly update. CSB Bank saw a strong rise of about 12%, while Dhanlaxmi Bank gained 5.7%, V-Mart Retail gained 5% and Shobha gained about 5.6%. Sapphire Foods came under the most pressure due to the news, with its shares falling about 7.3%. Meanwhile, PG Electroplast gained 4.9%. In the renewable energy sector, Waari Energies closed down 5.5% and Premier Energies lost about 6.5%. Besides, some other stocks that were among the top losers included Devyani International (5.3%), Epigral (4.8%), M&M Financial (4.7%), and Time Technoplast (4.1%). On the other hand, strong gains were seen in Lloyds Enterprises by 8.7%, Netweb Technologies by 8.5%, Ola Electric by 7.4%, and Metropolis Healthcare by 5.6%.
What is the reason for the slowdown in the market?
– Profit booking from higher levels
– No specific reason for decline
– If it was because of Venezuela, the market would have opened weak in the morning
– Screen shows FIIs selling again today
Which levels are important now?
– Nifty 26125-26235, Bank Nifty 59575-59775 strong support levels.
– Nifty 26325-26375, Bank Nifty 60150-60350 Profit Booking Range
– Reduce overnight positions if Nifty closes below 26100, Bank Nifty closes below 59700
– As long as Nifty closes above 25925, Bank Nifty closes above 58800, the trend will remain bullish.
stock in action
BEL:
– Good rally in defense stocks
– This stock was mentioned in ‘Opening Heroes’ this morning
Nykaa:
– Strong momentum in the stock due to quarterly update
– This stock was featured in this morning’s ‘Stock of the Day’
At around 09:35 am, the Sensex was trading down 198 points near 85,572. Nifty was trading 50 points down at 26,278. Good momentum was visible in Bank Nifty. The index was trading 100 points higher at 60,242. Nifty touched its all-time high of 26,358. Bank Nifty touched an all-time high of 60,437. India VIX was up 6%.
Sharp selling was seen in the IT sector. The index was down 2%. Barring LTIM, all IT stocks were trading in the red. Maximum losses were seen in Infosys, HCL Tech, Persistent, Wipro and Tech Mahindra. Realty, PSU Bank, Media, Metal, Auto and FMCG indices were trading higher. On Nifty 50, BEL, Axis Bank, Tata Steel, Asian Paints, Nestle India, Eicher Motors and ICICI Bank were trading up. After opening, Coal India, BEL, ONGC and SBI were the biggest gainers on Nifty.