Equity market slips in red, Nifty struggles to hold 11,000-mark2 min read . Updated: 20 Aug 2019, 11:27 AM IST
- Midcap and Smallcap indices continues to remain under pressure
- Yes Bank slips almost 6.32%, IT stocks soar
Mumbai: The equity benchmark indices on Tuesday opened on a positive note with Sensex gaining almost 100 points led by positive cues in the global market.
But the indices gave up the gains soon. At 11:20 am, the 30-share Sensex was trading at 37,291.00 down 111.49 points, or 0.30%, while the broader Nifty lost 43.25 points, or 0.39%, at 11,008.25.
Yes Bank, IndusInd Bank, ITC, ICICI Bank and Bajaj Finance were the top worst performing stocks on BSE, shredding as much as 6.32%.
The broader market continued to remain under-pressure with BSE Midcap and Smallcap indices losing 0.62% and 0.51% respectively.
"Monday’s decline from day’s high of Nifty and Bank Nifty highlights the lack of follow-on moves on Dalal Street. Friday’s recovery extended in the opening trades as Nifty marked a high of 11,147 but it failed to sustain at the top and resulted in a turnaround towards day’s low of 11,038, eventually settling higher by mere 6 points at 11,054. Thereby forming ‘meeting line’ pattern (i.e. opened above prior bullish candle’s peak and closed near prior session’s close), such type of price structure represents indecisiveness," said a report by Yes Securities.
Sector-wise, BSE Metal (-1.18%), Basic Materials (-1.11%), Energy (-0.97%), Bankex (-0.97%) and Realty (-0.90%) were the biggest laggards. However, BSE Information Technology (1.46%) and (1.15%) soared higher among sectors as rupee hit six-month low during the opening bell. On NSE, Nifty PSU Banks was the worst hit sector, losing 1.93%.
"Indian bourses begun week on a flat to positive note as NSE-Nifty reversed after visiting its short-term moving average 20-day EMA and finished trade with trimmed gain. Major technical indicators on the daily chart were positively poised above their averages, signals near-term positive momentum will continue. On the higher side, the index will face major hurdle around its long-term moving average 200-day EMA (placed at 11,260 level). However in case of any decline, NIFTY will initially find support around its swing low-10,780 mark and then at 10,600 level," according to Reliance Securities report.
"As for the day, support is placed at around 10,985 and then at 10,900 levels, while resistance is observed at 11,150 and then at 11,260 level," the report added.
Meanwhile, shares of Sterling and Wilson Solar Ltd made its debut on the stock exchanges at ₹700, down 10.25% from its issue price of ₹780. The company's initial public offering (IPO) was open for subscription during 6-8 August with a price band of ₹775-780 a share.
Shares of CG Power & Industrial Solutions Ltd plunged the most in six months after saying it will restate earnings after becoming aware of “suspect, unauthorized and undisclosed" transactions.
The shares slumped by its daily 20% limit to ₹14.8, taking the year’s loss to almost 70%. Earnings for the year ended March 2019, and previous years may have to be restated, according to a filing on Tuesday.