Indian markets closed in the red on Thursday. The 30-share BSE Sensex fell 77.84 points or 0.09 per cent to close at 84,481.81, while the 50-share NSE Nifty fell 3.00 points or 0.01 per cent to 25,815.55. After three consecutive days of decline, the trading session on Thursday also started on a weak note, and the market remained volatile throughout the day. During the day the market showed signs of recovery from its intraday lows. Ultimately, the benchmark indices recovered from their lows and closed the day. Sensex fell 78 points to 84,482 and Nifty fell 3 points to 25,816. Bank Nifty fell 14 points to close at 58,913. In the currency market, the rupee remained strong, gaining 14 paise at 90.24/$. Trading in the broader market also remained in a limited range. Midcap and smallcap indices closed with slight gains. Due to sectoral and stock-specific triggers, some stocks witnessed vigorous buying, while others remained under pressure.
Marginal recovery in midcap and smallcap
The Midcap Select index closed 69 points higher at 13,721, while the Smallcap index closed marginally higher by 16 points at 17,154. This suggests that investors are showing renewed interest in select midcap and smallcap stocks after the recent weakness.
IT shares in Nifty 50 supported the market
Today IT shares in Nifty 50 showed strength. Indigo rose 2.8%, while TCS and Max Healthcare gained about 1.7% each. Infosys also saw a gain of 1.4%. On the other hand, Sun Pharma fell 2.8%, and key stocks like Tata Steel, Power Grid and M&M were also under pressure.
Strong buying in AMC and capital market shares
Shares related to asset management companies remained in focus after the recent decisions of SEBI. HDFC AMC witnessed a strong rise of around 7%. Shares like Canara Robeco, Nippon Life and Kfin Tech also rose 3% to 6%. The market is hopeful that the changes in regulation will benefit the mutual fund industry in the long term.
Sharp fluctuations in selected shares
OLA Electric continued to fall by more than 5%, while Meesho and SG Finserv showed strength. Top losers included Dishman Carbogen, Hitachi Energy and Borosil. Among the top gainers, Gabriel India surged a whopping 16%. Route Mobile, HBL Engineering and HDFC AMC were also strong gainers.
What are the main reasons for recovery?
– Recovery from key support levels in an oversold market
– Nifty remained near the important support level of 25700
Bank Nifty has also not closed below 58800 for 23 days.
– Midcap Select Index broke the key support of 13700 yesterday but recovered today
– Smallcap index maintained important support level of 17000
– Support also came from short selling by FIIs
– Strength in rupee also contributed to the positive sentiment.
How sustainable is this recovery and what are the targets? – AI data did wonders again, major market levels were saved today
– Nifty took support in the range of 25675-25750
– Upper range for Nifty is 25900-26000
Bank Nifty took support in the range of 58650-58800.
– Upper range for Bank Nifty is 59250-59450
– Keep lightening positions in the upper range
– If Nifty closes above 26000 and Bank Nifty closes above 59250, then increase bullish positions.
stock in action
Indigo
Share prices recovered as crude oil prices fell.
hind zinc
– Global metal stocks recovered
voda idea
– Recovery took place after taking support near the important OFS level of ₹11
HDFC AMC
– Our analysis was accurate
– This stock was mentioned in ‘Hero of Opening’ this morning
IT and PSU bank indices were up. The IT index rose by more than 1%. However, indices like auto, pharma and realty were down. Wipro, Infosys, HCL Tech, TCS, Shriram Finance, Tech Mahindra and IndiGo were the top gainers in Nifty 50. Whereas, Sun Pharma, TMPV, M&M, Bajaj Auto, NTPC, Eicher Motors, BEL, LT and Maruti were the top losers today.