Share Market News Today | Sensex, Nifty, Share Prices Highlights: Dalal Street equity indices failed to reverse the downtrend on Thursday and closed deep in red for the third day running. S&P BSE Sensex recouped some losses in the dying hour of trade but closed with a loss of 634 points or 1.06% at 59,464. NSE Nifty 50 shed 181 points or 1.01% to end at 17,757. Bank Nifty closed 0.50% in red, broader markets mirrored the fall. India VIX shed points in the last few minutes of the day’s trade to end at 17.79 levels. Power Grid was the top Sensex gainer, up 4.86%, along with Bharti Airtel, Asian Paints, Maruti Suzuki, and Ultratech Cement. Bajaj Finserv ended 4.57% in red as the worst-performing Sensex constituents, followed by Bajaj Auto, Infosys, and TCS.
For the third day straight Sensex and Nifty closed with losses as bears wreaked havoc on Dalal Street. S&P BSE Sensex recouped some losses in the dying hour of trade but closed with a loss of 634 points or 1.06% at 59,464. NSE Nifty 50 shed 181 points or 1.01% to end at 17,757. Power Grid was the top Sensex gainer, up 4.86%, along with Bharti Airtel, Asian Paints, Maruti Suzuki, and Ultratech Cement. Bajaj Finserv ended 4.57% in red as the worst-performing Sensex constituents, followed by Bajaj Auto, Infosys, and TCS. Bank Nifty closed 0.50% in red, broader markets mirrored the fall. India VIX shed points in the last few minutes of the day's trade to end with losses.
Fag end buying on Dalal Street saw Nifty close 181 points lower at 17,757, up from the intraday low of 17,648. Sensex ended the day 634 points lower at 59,464. Bank Nifty closed 0.50% in red at 37,850.
TCS, Reliance Industries, Infosys, and HDFC were among the laggards on Sensex on Thursday, pulling the index lower.
Nifty has entered the crucial support zone of 17,777-17,800 just ahead of the closing bell. The index was earlier seen trading well below the 17,700 mark.
Bank Nifty resurfaced from lows of 37,591 to sit hover around 37,920 with minutes left before the closing bell. Bank Nifty was down 0.30%.
India VIX, the volatility gauge of domestic markets, was down in red after having soared past 18 levels earlier in the day. India VIX was sitting around 17.5.
Sensex was erasing some losses ahead of the closing bell but was still in the red. Sensex was down more than 600 points while NSE Nifty 50 was above 17,700.
Sensex and Nifty were up from their intraday lows but still deep in the red. Sensex was still down 700 points while Nifty was around 17,700.
Private insurance companies reported an annual premium equivalent (APE) growth of 20% in 2021, making the year a reasonable one for them, however, the stock market performance of some listed players was not quite impressive owing to high valuations, said analysts at CLSA. The brokerage firm believes in 2022, the prospects are better for the listed private insurance players with APE growth being the key driver. While SBI Life Insurance Company is CLSA’s top pick in the sector, Max Financial remains a ‘Buy’ call while HDFC Life Insurance and ICICI Prudential Life have been upgraded to a ‘Buy’ rating. Of the four stocks, Max Financial Services is down in red year-to-date, while the other three have gained marginally.
“Markets have erased the 9-day rally in just three days. Points towards a strong bearish trend. Better to avoid long positions, sell on the rise opportunity,” said Vishal Wagh, Head of Research, Bonanza Portfolio.
“Markets have seen a rather rapid correction of nearly 600 points in the last three days. This has come after a strong technical pullback of nearly 1800+ points from the lows of 16400. The present technical structure on the charts suggests consolidation; however, there are no signs that point at any major drawdown or a crash. So, I think investors should now start approaching the markets on a highly selective note; all such opportunities should be used at picking up good quality stocks with improving relative strength. This is the time to add good quality stocks,” said Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services.
Sensex is now down more than 900 points as Dalal Street continues to correct. Nifty was down 271 points.
All sectoral indices on NSE were deep in red on Thursday. Nifty IT was down 1.91% as the worst sectoral gauge along with Nifty FMCG and Nifty Pharma. Bank Nifty was down nearly one per cent.
Thursday's bearish market movement has left Dalal Street investors poorer by Rs 2.16 lakh crore. The Market Capitalisation of all BSE listed firms stood at Rs 274 lakh crore on market closing on Wednesday, the same was down at Rs 272 lakh crore on Thursday, with an hour left before the closing bell.
Given the enormous increase in medical expenses due to Covid-19, we urge the government to hike the standard deduction from the current ₹50,000 to ₹1,00,000. This will further lower the tax burden and put more money in the hands of the salaried class. The government should remove the concept of speculative income and restrict income classification arising from capital market transactions to business income, long-term capital gains and short-term capital gains. We hope that the Government considers tax exemption up to ₹1,00,000 lakh on short-term capital gains tax as well as tax exemption on dividends up to ₹50,000 for senior citizens. The 2022 budget 2022 should help build momentum in the equity markets and every possible avenue must be considered by the government to make this happen. Puneet Maheshwari, Director, Upstox
Nifty 50 index gave up 17700 on Thursday as bears continued to force Dalal Street indices lower. Sensex was down more than 800 points.
“The 18210-330 region that we had kept In our cross hairs for the last few days, with the expectation of offering stiff challenge to upsides, stood firm despite persistent attempts to push higher. But as expected, when Nifty finally capitulated yesterday, a collapse did not follow, and it would require more distribution before 17600 can be fancied. For now, 17950 looks to be a base case scenario. Alternatively, pull back above 18250 could render the trend neutral, but it would be prudent to look for a close above 18330 or dips to 17950 before reconsidering longs.”
~ Geojit Financial Services
Mukesh Ambani’s Reliance Industries Ltd is likely to see a rise in profit and revenues on the back of improvement in refining, petrochemicals and retail performance, when it reports its fiscal third quarter earnings on Friday. Analysts expect the oil-to-telecom conglomerate to post better numbers than the previous quarter. RIL is scheduled to release its October-December quarter results for the current fiscal on Friday, 21 January 2022, after market hours.
“For Positional Traders: Bank Nifty looks good for a reversal. Its didn’t break yesterday’s low. PSU Banks holding strong in a negative market,” said Rahul Sharma, Director & Head – Research, JM Financial.
Power Grip was up 3.64%, followed by Bharti Airtel, Ultratech Cement, Maruti Suzuki India, NTPC, and State Bank of India.
Nifty trend continues to remain downwards as the index slipped below 17800 support on Thursday.
Global fund managers continue to remain bullish on equities with a net 55% overweight on the asset class, said Bank of America’s (BofA) Global Fund Manager Survey. The monthly survey by BofA, where 329 CIOs, portfolio managers, and equity strategists participated, showed that a majority of investors believe global inflation is still transitory and not permanent. Even though the US Federal Reserve has hinted at a faster than expected tightening of policy measures, fund managers have maintained their overweight position in equities. However, they have moved towards banks and commodities while trimming their allocation in technology to the lowest since December of 2008.
“For the day, bias remains negative as Nifty broke technical support of 17,950. Nifty next support placed at 17,800. Expiry likely to be in the range of 17,900 to 18,000 as per current data,” said Rahul Sharma, Director & Head – Research, JM Financial.
“There is a distinct bearish trend in the mother market of the US. Nasdaq is 10.7% down from its 2021 November highs and Russel 2000 is at 52 week lows. This need not translate into a similar trend in India too. But investors have to be cautious since rising global inflation and the expected monetary tightening will be major headwinds for markets at least in the first half of 2022. The situation might change in the second half if supply disruptions ease and inflation comes down. Meanwhile, investors may stick to the safety of high-quality large-caps in performing sectors like IT, financials and construction. Many low-grade small-caps driven by speculation are heading for disaster,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The index option weekly highest Call base is still placed at 18100, which remains an immediate hurdle. The highest Put base is still placed at 17900-17800, which remains positional support.
For the coming session, the trading spot band is between 17850 and 18160, which means further upsides are likely once the immediate resistances of 18160 are taken out and weakness could emerge if the supports of 17850 are broken.
~ Raushan Kumar, Derivative Analyst, IIFL Securities
Sense opened with losses on Thursday as the index gave up 60,000, falling nearly 0.30%. NSE Nifty 50 was hovering around 17,900. Bank Nifty traded flat.
Nifty 50 index opened flattish on Wednesday and cascaded down to 17884 levels. It slipped throughout the day with slight recovery in the last hour and finally, closed with losses of around 170 points. It formed a Bearish candle on the daily scale and negated its higher highs formation of the last eight sessions.
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Sensex was trading flat with positive bias on Thursday morning while Nifty 50 was down in the red.
Traders can initiate a Moderately Bearish strategy with reduced premium outflow & lower breakeven point called Debit Put Spread or Bear Put Spread for 20th January Expiry wherein trader will buy one lot of 18,000 Put strike @ 83 and simultaneously sell one lot of 17,800 Put strike @ 15, so that net outflow or maximum loss will be restricted to up to Rs 3,400. If Nifty on expiry closes below 17,932 the strategy will start making profit, however, as there is one out of the money sold put which has helped to bring down the cost of Long Put and converted the strategy into limited risk & profits. The maximum gains will be restricted up to Rs 6,600 because the gains of long 18,000 strike Put will be offset by the sold 17,800 strike Put if Nifty closes below 17,800 on expiry.
A sharp down trended move continued in the market for the second consecutive sessions on Wednesday and Nifty closed the day lower 174 points amidst a range movement. Another long bear candle was formed on the daily chart, which signal a downtrend continuation pattern in the market. The formation of long bear candle back to back in the two session indicate a trend reversal down in Nifty after a sustainable upmove of the last 22-23 sessions. The present weakness could form a new higher bottom of the uptrend of last three weeks. Important daily support as per change in polarity is placed around 17650 levels. Hence, this area could be a buy on dips opportunity for the short term. Nifty on the weekly chart has started to show weakness after an excellent upmove in the last three weeks. After the negation of bearish lower tops and bottoms pattern as per weekly chart in recent past, the market could find support at the previous upside breakout point of around 17650-17700 levels during its current downward retracement.
BSE-listed companies such as Hindustan Unilever, Biocon, Asian Paints, Bajaj Finserv, Havells India, Persistent Systems, PNB Housing Finance, Agro Tech Foods, Bajaj Holdings & Investment, Century Textiles & Industries, Container Corporation Of India, Cyient, Datamatics Global Services, Hatsun Agro Product, Lyka Labs, Bank Of Maharashtra, Mphasis, Reliance Industrial Infrastructure, Sasken Technologies, Shoppers Stop, South Indian Bank, Vimta Labs and VST Industries were scheduled to announced their Oct-Dec quarter earnings on Thursday.
“Volatility is likely to be the hallmark of today’s trade. Sentiments continue to remain depressed after yesterday’s huge losses and most importantly, the fall indicates that the Nifty bulls are vulnerable. Investors are likely to remain risk-averse to equities until the 10-year US Treasury yield slips from its fresh two-year high of 1.856%, and the yield on the 2-year bond stages corrective decline from 1.075%. Technically speaking, the benchmark Nifty needs to hold above 17900 mark in today’s trade for any meaningful recovery. The technical landscape will turn aggressively bullish only above Nifty 18389 hurdles. Nifty’s intraday hurdle is at 18187 mark. Alternatively, expect a water fall of selling if Nifty slips below 17900 mark,” said Prashant Tapse, Vice President (Research) at Mehta Equities Ltd.
“The underlying trend of Nifty continues to be down. The short term top reversal has been confirmed at the high of 18350 and the bearish patterns as per daily timeframe chart remains intact. The next downside levels to be watched around 17700-17650 levels and any pullback rally from here could find strong resistance around 18100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Indian equity market fell sharply for the second consecutive session on Wednesday with the Nifty50 falling below 18,000 level as FII selling, elevated oil prices and inflation concerns weighed on sentiment. Investors’ wealth has eroded by Rs 5,24,647.66 crore in the last two days as markets. “Going ahead, the market is likely to continue with its consolidation till the inflation fear looms. Also, major events like upcoming budget and various state elections could lead to higher volatility in coming days,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.