Sensex, Nifty end the week in red; top factors that steered the stock market today

By: |
Published: July 10, 2020 4:29 PM

Domestic benchmark indices ended the last trading session of the week down in the red following weak global cues. S&P BSE Sensex slipped 143 points or 0.39%, while the Nifty 50 ended at 10,768 mark.

All banking and finance stocks on BSE Sensex ended in the red with Axis Bank and IndusInd Bank being the worst performers.

Domestic benchmark indices ended the last trading session of the week down in the red following weak global cues. S&P BSE Sensex slipped 143 points or 0.39%, while the Nifty 50 ended at 10,768 mark. Stock markets did revive in the dying hours of trade but failed to pull out of the negative territory. “The markets continued their range-bound movements all of today. Nothing has changed in the last 4 trading sessions. The range commenced on Tuesday and has continued until today. We have closed within the range of 10650-10850. Both these levels continue to remain important and crucial in the coming week,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Financials drag markets: All banking and finance stocks on BSE Sensex ended in the red with Axis Bank and IndusInd Bank being the worst performers. All major banks were down over 1.3%. S&P BSE Bankex ended down 2.22% while Nifty PSU Bank, Nifty Bank, and Nifty Private Bank were the worst sectoral performers. 

Global markets: Stock markets across the globe were mixed but most in Asia were down in the red. “Global stocks were mixed following record infections in the US, which led to worries of delayed global economic recovery, while Indian markets worried about record cases of infections and increasing localized lockdowns,” said Vinod Nair, Head of Research at Geojit Financial Services.

RIL shares surge: Surging to a new 52-week high Reliance Industries Ltd shares helped the index recoup some losses. RIL shares jumped over 3% to trade at Rs 1,882 per share. This spike made RIL the top gainer on BSE Sensex today. 

Volatility: It was another volatile trading session with the India VIX gaining during the entire dut falling in the end to help the indices scale back from the day’s low. The volatility index fell 4% this week not before causing some damage to the share market.

Technical outlook: 

Nifty 50 opened gap up in the current week, however, trading range remained very narrow compared to all other weeks since the bottom of 7500. The entire rally has unfolded in the form of rising wedge formation and at the current juncture Nifty index is trading around the resistance of rising wedge and approaching the crest of the wedge. The participation in the rally is not broad-based, only a few heavyweights are driving the index higher. The bank nifty index, which had been rising mutedly until now, has outperformed the benchmark index in the week gone by and financial stocks have contributed the most towards Nifty gains. We believe the market is little stretched in the short term and expect a very limited upside. A break below 10600 will significantly dent the strength of the bulls. ~ Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Companies post worst profit decline in a decade, but market analysts are happy about it
2ICICI Bank closes QIP after raising Rs 15,000 crore; sells shares at 1.9% premium to floor price
3How new-age banking solution geared with AI can help make wise investment decisions