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Business News/ Markets / Stock Markets/  Market Wrap: Sensex falls 125 points, Nifty 50 settles below 19,800, dragged by IT, banking stocks

Market Wrap: Sensex falls 125 points, Nifty 50 settles below 19,800, dragged by IT, banking stocks

Market Wrap: Nifty 50 loses 42.95 points to settle at 19,751.05. The Sensex falls 125.65 points to close at 66,282.74.

Nifty loses 42.95 points to settle at 19,751.05. The Sensex falls 125.65 points to close at 66,282.74.Premium
Nifty loses 42.95 points to settle at 19,751.05. The Sensex falls 125.65 points to close at 66,282.74.

Stock Market Today: Domestic benchmark equity indices slipped into red on Friday's session despite some intraday recoveries. In the last hour of the trade, index heavyweight stocks such as HDFC Bank, Kotak Mahindra Bank, State Bank of India, and Axis Bank witnessed major selling dragging down the benchmark indices.

Nifty 50 lost 42.95 points to settle at 19,751.05. The Sensex falls 125.65 points to close at 66,282.74.

Further, information technology stocks also weighed on the market sentiment on the backdrop of US inflation worries. Tata Consultancy Services (TCS) (+0.87%), Infosys (-2.23%) and HCL Tech (+2.64%) flagging concerns of slower growth weigh on sentiments.

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On the other side, buying interest was seen in Nifty Auto Index, up 0.87% as Tata Motors zoomed 5%.

"Amidst volatility, Nifty smartly trims sharp morning losses. Follow-through buying was missing albeit a weak performance by Nifty PSU Banks index (-1.38%) and Nifty IT index which dropped 0.87% after TCS & Infosys' Q2 revenue guidance disappointed streets’ estimate.

Also Read: Nifty Pharma gains driven on robust growth environment; Cipla, Sun Pharma top stock picks

Meanwhile, Tata Motors was in limelight on media reports that the government is working on a policy to support local manufacturing of electric cars, a decision likely to provide a level playing field for the industry. Long story short: Nifty hits pause button," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities. 

Further, Tapse said that if today’s uninspiring session is any indication, then Nifty will waver and trade choppy and rough in Monday’s session as well.

 “Please note, confirmation of strength only above Nifty’s biggest hurdles at 19887 mark. Nifty’s biggest support is placed at 19509 mark. Nifty’s 200 DMA at 18554 mark," added Tapse.

On the global front, the recent US inflation statistics reinforced bets on Federal Reserve rate hikes, which caused Treasury rates to spike higher and the Asian stock advance to pause. More pessimism was brought about by the most recent report showing China's economy is still sluggish.

Also Read: Greed & Fear: Global funds now paying more attention to India, says Wood; remains bullish on growth

Australia's S&P/ASX 200 Index slipped 0.6%, China's Shanghai Composite Index lost 0.6%, Hong Kong's Hang Seng Index dropped 2.33%, and Japan's Topix fell 1.44%.

Following dismal inflation data from China and US inflation data that fuelled worries about interest rates, European stocks also fell on Friday. The financial services and healthcare industries saw the worst declines in the pan-European STOXX 600 index, which dropped 0.5%.

Following an order by Israel's military for hundreds of thousands of residents residing in Gaza City to evacuate in anticipation of a potential ground operation, oil prices increased by roughly USD 3 early on Friday.

On the New York Mercantile Exchange, benchmark US crude saw a gain of USD 2.97 to USD 85.88 a barrel through electronic trading. On Thursday, it dropped 58 cents to close at USD 82.91. The global benchmark, Brent crude, increased by USD 2.98 to USD 89.01 a barrel, according to PTI news report. 

Also Read: This is the best market investment strategy at any time, according to Viraj Gandhi of SAMCO MF

Top Nifty 50 Gainers and Losers

As many as 23 stocks settled in the green in the Nifty 50 index while the rest 27 ended in red.

Shares of Tata Motors (up 4.73%), HCL Technologies (up 2.72%), IndusInd Bank (up 2.44%), Tata Consumer (up 2.15%) and Nestle India (up 2.06%) ended as top gainers. On the other side, Axis Bank (down 2.40%), Adani Enterprises (down 2.29%), Infosys (down 2.23%), State Bank of India (down 1.68%), and Wipro (down 1.46%) were among the laggards.

Also Read: Top gainers and losers today on 13 October, 2023: Tata Motors, Indusind Bank, Axis Bank, Infosys among most active stocks; Check full list here

Sectoral indices today

While most sectoral indices ended with losses, Nifty Bank was down by 0.70, Nifty IT was fell by 0.61% followed by Nifty Metal, which was again down by 0.62%. Nifty Media fell 1.18%.

On the other side, Nifty Auto gained 0.9%, followed by Nifty Pharma (up 0.3%), and Nifty Realty (up 0.4%). 

Experts' views on markets

"Weak revenue guidance of the IT sector and the current uptick in crude prices weighed on the sentiment. While higher-than-expected US inflation data pulled down the week's early uptrend, which was positive on remark of less hawkish US Fed meeting. 

However, some optimism was visible from domestic factors like a steep decline in domestic inflation and impressive industrial production data, along with bright earnings expectations for Q2," said Vinod Nair, Head of Research at Geojit Financial Services.

Technical views on Nifty 50

"The bulls were able to protect the level of 19600 during the day, thanks to the strong open interest (OI) build-up at the 19,600 strike price by put writers. The strength may continue as long as the index remains above 19600. 

Only a decisive fall below 19600 might trigger serious long unwinding in the market, till then a buy on dips strategy to favor the market. On the higher end, resistance is visible at 19850; above 19850, the index might move towards 20000," said Rupak De, Senior Technical analyst at LKP Securities.

According to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, in the Bank Nifty index, the ongoing battle between the bulls and bears continued. Resistance is established at the 44,700 mark, while the support lies at 44,000. 

The overall market sentiment remains bullish as long as the critical support at 44,000 holds, and a breach below this level, confirmed by a closing basis, may lead to renewed selling pressure. On the upside, a substantial resistance level is placed at 45,000, and a breakout beyond this point is likely to trigger significant short-covering.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.


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Published: 13 Oct 2023, 04:09 PM IST
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