The Nifty is sill waiting for a breakout. The medium-term trend is down
The market, which was volatile throughout the session, settled in the red on selling pressure in heavyweights. Although the intraday high on the Nifty was almost the same as yesterday, the index made a higher low today. The benchmark is waiting for a breakout. However, we see the medium-term trend down. The National Stock Exchange (NSE) saw a volume of 55.40 crore shares and the advance decline ratio of 711:1014.
The Indian markets will remain closed on Wednesday for a local holiday.
The Indian market witnessed a flat opening in the absence of any local triggers. In the global arena, US markets settled with marginal gains overnight following a late recovery and the Asian pack was in the green in morning trade today but concerns about corporate earnings kept a tab on the gains.
The Nifty opened one point lower at 5,716 and the Sensex resumed trade at 18,804, up 11 points over its previous close. Volatility, ahead of the F&O derivatives expiry on Thursday, was seen since the opening of trade, which kept the indices in and out of the red in the first hour of trade. But despite the volatility, select buying led the benchmarks to their intraday highs in early trade. At the highs, the Nifty rose to 5,721and the Sensex went up to 18,813.
The market slipped into the red around 10.00 am on selling pressure in consumer durables, IT, oil & gas and auto stocks. The benchmarks continued to remain in the negative in noon trade as a lower opening of the key European markets added to the woes back home.
The indices dropped to their lows in post-noon trade on selling in auto, fast moving consumer goods and technology stocks. At the low the Nifty went back to 5,681 and the Sensex retracted to 18,689.
The market closed off the lows on a minor bounce back in late trade. The Nifty finished trade at 5,691, down 26 points (0.45%), and the Sensex settled 83 points (0.44%) lower at 18,710.
Among the broader markets, the BSE Mid-cap index fell 0.23% and the BSE Small-cap index declined 0.25%.
The BSE Capital Goods index (up 0.90%) was the only sectoral gauge to settle in the green today. The top losers were BSE Consumer Durables (down 0.98%); BSE IT (down 0.88%); BSE Metal, BSE Fast Moving Consumer Goods (down 0.84% each) and BSE Power (down 0.82%).
Seven of the 30 stocks on the Sensex closed in the positive. The main gainers were Larsen & Toubro (up 1.91%); ICICI Bank (up 0.53%); Coal India (up 0.18%); Hindustan Unilever (up 0.16%) and Dr Reddy’s Laboratories (up 0.13%). The key losers were Jindal Steel (down 2.43%); Hero MotoCorp (down 1.90%); Hindalco Industries (down 1.56%); Infosys (down 1.42%) and TCS (down 1.29%).
The top two A Group gainers on the BSE were—L&T Finance Holdings (up 3.24%) and Bayer Corporation (up 3.23%).
The top two A Group losers on the BSE were—Jaiprakash Power Ventures (down 3.73%) and GMR Infrastructure (down 3.64%).
The top two B Group gainers on the BSE were—Indo Count Industries (up 19.96%) and Peninsula Land (up 19.93%).
The top two B Group losers on the BSE were—Jaihind Projects (down 19.91%) and Xchanging Solutions (down 19.71%).
Out of the 50 stocks listed on the Nifty, 12stocks settled in the positive. The top gainers were BPCL (up 1.91%); L&T (up 1.74%); Siemens (up 1.01%); IDFC (up 0.72%) and Coal India (up 0.46%). The major losers were Jindal Steel (down 2.57%); Hero MotoCorp (down 1.98%); Kotak Mahindra Bank (down 1.97%); Lupin (down 1.68%0 and Hindalco Ind (down 1.52%).
Markets in Asia settled mixed as the quarterly earnings season in the region is expected to come under pressure following the global slowdown. Fresh worries from Europe after ratings agency Moody’s Investor Services on Monday cut ratings of five Spanish regions on deteriorating liquidity positions also weighed on the investors.
The Hang Seng climbed 0.68%; the KLSE Composite gained 0.18%; the Nikkei 225 rose 0.04% and the Straits Times advanced 0.17%. On the other hand, the Shanghai Composite tanked 0.86%; the Jakarta Composite fell 0.26%; the Seoul Composite declined 0.76% and the Taiwan Weighted settled 0.48% lower.
At the time of writing, the key European indices were down between 0.83% and 0.92% and the US stock futures were in the negative, indicating a lower opening for US stocks.
Back home, foreign institutional investors were net buyers of stocks totalling Rs241.68 crore on Monday whereas domestic institutional investors were net sellers of equities amounting to Rs137.88 crore.
Mumbai-based turnkey construction major Hindustan Construction Company has secured a third contract worth Rs373 crore from the Delhi Metro Rail Corporation. The order is for design and construction of a 2.2 km twin tunnel between Shalimar Baug and Netaji Subhash Place stations on the Mukundpur-Yamuna Vihar corridor under phase III of the Delhi Metro. The contract is scheduled for completion in 36 months. HCC settled 1.17% lower at Rs16.85 on the NSE today.
Elecon Engineering Company has procured domestic orders aggregating Rs17.13 crore from NMDC and Rs 7.19 crore from Tecpro Systems. While NMDC’s order is for supply, erection and commissioning of machines for its projects at Bacheli and Kirandul, the one from Tecpro Systems is for the Harihar project. Elecon Engineering gained 0.71% to close at Rs49.60 on the NSE today.
SAIF India IV FII Holdings, Mauritius has increased its stake in Hyderabad-based Pennar Industries from 7.74% to 9.85%. The overseas investment entity has hiked the stake by acquiring shares from the open market. Pennar Industries closed 0.56% higher at Rs27.15 on the NSE.