Domestic benchmark indices Sensex and Nifty nose-dived on Monday as they carried in their losing streak for a fourth consecutive trading session.
Domestic benchmark indices Sensex and Nifty nose-dived on Monday as they carried in their losing streak for a fourth consecutive trading session. The S&P BSE Sensex was down 667 points while the Nifty 50 gave up the 10,900 mark. Only 6 stocks among the 30 constituents of BSE Sensex ended with gains. Falling below the 10,900 mark, analysts believe this hints at further downward movement in stock markets in the coming trading sessions. Bank stocks were again at the receiving end of the worst, with all banking stocks except SBI ending with losses.
Global markets: Asian stock markets were mixed on Monday. Shanghai Composite gained but Hang Seng ended down in the red. Japanese stock markets were up but equity markets in Taiwan, South Korea, and Singapore were down trading with losses.
Top losers: Kotak Mahindra Bank and IndusInd Bank were the worst performers on BSE Sensex. Apollo Hospitals tanked 6% while Bandhan Bank fell 10% after a block deal saw promoters reduce stake. Hinduja Global Solutions and Leading Leasing Finance and Investment Company were two worst performing stocks on the stock exchanges on Monday.
Banking stocks: All bank stock except State Bank of India ended with losses. Kotak Mahindra Bank, IndusInd Bank and Axis Bank were the worst performers. “ As virus cases continued to rise and with the uncertainty regarding rate actions by the RBI, markets succumbed to the momentum slowdown visible in the last couple of trading sessions. Losses were led by financials,” said Vinod Nair, Head of Research at Geojit Financial Services.
Technical view: “Index started a week on a negative note and closed a day at 10900 with loss of 1.57 percent forming a bearish candle on daily chart. Index again retraced below 11 k mark hinting if continued to trade below 11k mark we may see some more cuts towards immediate support zone of 10800-10730 zone and resistance is coming near 10950-11000 zone, strength will be back only above 11k mark. Nifty bank closed a day at 21072 with loss of nearly 3 percent; nifty closed a day near crucial support zone of 21k mark any break below 21k mark can see more pressure towards 20500 zone and resistance is coming near 21350-21700 zone,” said Rohit Singre, Senior Technical Analyst at LKP Securities.