It was a volatile day of trade on D-Street but the bears managed to get an upper hand towards the close of the trade as the S&P BSE Sensex plunged nearly 100 points while the Nifty50 closed below 9,900.
The Sensex ended 97 points down at 33,507 and the Nifty closed 32 points lower at 9,881.
The market breadth was in favour of advances with the advance-decline ratio at 4:3. Experts are of the view that the trend is likely to remain volatile, and investors should look for stocks-specific opportunities and FIIs trend.
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“After another day of indecisive trades, brought by the threat of escalation in a border dispute with China, Indian benchmark indices ended slightly negative. The losses were mainly due to financial stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The major sectoral gainer was the auto sector, led by gains in Maruti. FIIs have also been net sellers in equity this week which have impacted the markets. Volatility to remain.”
Prime Minister Narendra Modi in a video conference on June 17 assured the country that the deaths of the soldiers killed in a clash with Chinese troops in Ladakh’s Valley won’t be in vain Ladakh. India wanted peace but was capable of giving a befitting reply when instigated, he said.
Sectorally, selling pressure was seen in the power, metals, finance, banks, and capital goods stocks while some buying was visible in telecom, auto, consumer durables and realty spaces.
Broader markets outperformed the benchmark indices. The S&P BSE Midcap index was up 0.32 percent while the S&P BSE Small-cap index rose 0.71 percent.
Top Nifty gainers included Axis Bank, Wipro, Bharti Airtel, and Maruti Suzuki India Ltd, which were up 2-4 percent.
Top Nifty losers included ITC, Shree Cements, Kotak Bank and Bharti Infratel that were down 2-4 percent.
Stocks & Sectors
The S&P BSE Telecom index was up 2.3 percent followed by the S&P BSE Auto index that was up 0.7 percent and the S&P BSE Consumer Durables index closed 0.5 percent higher.
Selling pressure was visible in the S&P BSE Power index, which fell 1 percent. The S&P BSE Metal index was down 0.7 percent and the S&P BSE Bankex slipped 0.52 percent.
A volume spike of more than 100 percent was seen in stocks like Britannia Industries, Escorts, Maruti Suzuki and BHEL.
Long Buildup was seen in stocks like Escorts, Chola Finance, Maruti Suzuki.
Short Buildup was seen in stocks like Bharti Infratel, HDFC, RIL and NALCO.
Bayer Cropsciences, Ruchi Soya, Aarti Drugs, Muthoot Finance, Escorts and Adani Green were among the 100 BSE stocks to a fresh 52-week high.
Stocks in news
Globus Spirits, Adani Green, Take Solutions and Network18 hit the upper circuit.
Bharti Airtel and Vodafone Idea closed in the green a day ahead of adjusted gross revenue hearing.
The share price of Bharti Airtel rose 3 percent after the company acquired a strategic stake in Edtech startup Lattu Media Pvt Ltd.
HPCL ended 2 percent higher after reporting profit in Q4 against an expectation of loss.
India Cements rallied 5 percent after media reports said the supermarket chain D-Mart owner Radhakishan Damani was considering taking control of the company
Maruti Suzuki share price rose 4 percent after the company partnered with Karur Vysya Bank to offer consumers simpler and flexible financing schemes to own a new car.
Technical View
The Nifty formed a Doji candle, indicating indecisiveness among market participants, on the daily charts while MACD gave a bearish crossover on the charts.
The index closed below its 5-day EMA.
“Going forward, 9777-9720 zones would act as immediate support and we may see an up move towards 10,040 and 10,180 zone,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
“Thus, traders are advised to look for buying opportunities on declines in the market and also focus more on stock-specific action,” he said.
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 decisions.
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