Taking Stock: Nifty below 25,250, Sensex down 174 points amid last-hour rebound
The last-hour buying helped Indian benchmark indices recover intraday losses, ending marginally lower after a choppy session on October 13, as Nifty 50 closed above 25,200 amid some easing in US-China trade rhetoric, hopes of progress in India-US trade talk as pointed out of PM Modi, and the peace deal between Hamas and Israel.
Earlier, the market opened lower and saw extended selling, dragging Nifty near 25,150, however, last-hour buying helped the index to close comfortably end above 25,200. At close, the Sensex was down 173.77 points or 0.21 percent at 82,327.05, and the Nifty was down 58 points or 0.23 percent at 25,227.35. BSE Midcap index was down 0.2 percent and smallcap indices shed 0.4 percent.
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Among sectors, metal, telecom, IT, FMCG, capital goods, consumer durables slipped between 0.5-1%.
Tata Motors, Infosys, Wipro, Nestle, HUL were among major losers on the Nifty, while gainers were Bharti Airtel, Bajaj Auto, Adani Ports, Shriram Finance and Bajaj Finance.
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In stock-specific action, Avenue Supermarts' shares shed 3% despite better Q2 update, Waaree Renewable shares added 8% on strong Q2 business update, BLS International slipping 11% on MEA curbs, Phoenix Mills' shares rising 1.5% on Q2 collections.
Zen Technologies' shares fell 2% despite winning a defence order, Viviana Power shares added 6.5% on multiple MoUs with Gujarat, Vodafone Idea shares slipped 3.4% after the apex court deferred the AGR hearing after Diwali, and HDFC AMC shares gained 2.5% ahead of board meet on October 15 to consider bonus shares.
More than 150 stocks touched their 52-week high on the BSE, including HBL Engineering, L&T Finance, Bajaj Finance, Fortis Healthcare, Nippon Life India, SBI, Yes Bank, Indian Bank, Eternal, RBL Bank, Authum Investment, among others. Click to View More
New Listing
Shares of Tata Capital ended with nearly 2 percent gains at Rs 331.75, after listed at Rs 330 per share, a premium of 1.23 percent over its IPO price. The 15,512-crore issue had a price band of Rs 310-326 per share.
Outlook for October 14
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
The market shifted into minor weakness after showing a couple of sessions of sustainable upmove. Nifty hit a roadblock around 25400-25500 levels (down sloping trendline hurdle) and moved into a consolidation zone. After opening on a negative note, the market shifted into a range-bound action with weak bias for better part of the session.
A small positive candle was formed on the daily chart, and which technically indicates a choppy movement or minor downward correction. Higher tops and bottoms are intact on the daily/weekly chart, and the recent rally could be in line with the formation of new higher top of the sequence.
The short-term trend of Nifty is choppy, but the underlying medium-term trend remains positive. Any further weakness from here could find support around 25000 levels before bouncing back from the lows. Immediate resistance is placed at 25500 levels.
Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices witnessed a recovery from lower levels. The Nifty ended 58 points down, while the Sensex was down by 173 points. Among sectors, the Défense index lost the most, shedding over 1 percent, whereas despite weak market sentiment, the Capital Market index outperformed, rallying 2.55 percent. Technically, after a gap-down open, the market took support near 25,150/82,000 and bounced back sharply. From the day's lowest levels, the market bounce nearly 100/400 points.
We believe that the intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders. On the downside, 25,150/82,000 and 25,100/81,800 would act as key support zones, while 25,350-25,400/82,500-82,800 could serve as immediate resistance areas for the bulls. However, below 25,100/81,800, the market could retest the level of 25,000/81,500.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.