Share Market Highlights: Sensex ends at 52,306, Nifty below 15,700; RIL, ICICI Bank among drags

Sensex and Nifty ended in red on Wednesday, diving deep during the dying hours of trade. Nifty has managed to end just below 15,700 -- holding on to the support levels of 15,600. 

Indian economy, which showed sequential GDP growth in January-March, may again go in reverse after being struck by the second wave of the covid-19. With millions once again asked to stay at home and businesses forced to operate in a restricted fashion, supply and demand dwindled once again and economic activity slumped in the first quarter of this fiscal year. Now, the government must scale up spending, boost consumption, and ignore the rise in fiscal deficit, for now, to revive the economy, say economists. India’s GDP is estimated to have contracted (-)7.3% in the previous financial year, a sharp fall from the 4% annual growth recorded in the financial year 2019-20.

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Reliance Industries, ICICI Bank, HDFC, Kotak Mahindra Bank were among the drags on Sensex. 

Sensex dived 200 points while Nifty 50 was threatening to give up 15,700 with less than an hour left before the closing bell on Wednesday. 

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Moody’s said faster vaccination progress will be paramount in restricting economic losses to the current quarter. As of the third week in June, only about 16 per cent of the population had received one vaccine dose; of those, only about 3.6 per cent had been fully vaccinated.

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India VIX, the volatility gauge, continued to inch higher on Wednesday. The index was up 3% at this hour, sitting above 15 levels.

Zerodha, India’s largest brokerage firm, has come up with a new feature ‘Kill Switch’, a new nudge on its Kite app. This will allow users to take a break from trading and prevent over-trading. With its Nudge functionality, Zerodha has been including warnings and nudges into Kite, alerts that help clients better the odds of winning when trading. “When you’re in a drawdown while trading, the best thing to do is to take a break. Otherwise, the chances of you being irrational, taking large bets, overtrading & blowing up are high,” said Nithin Kamath, Founder & CEO, Zerodha Online, in a tweet.

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Ahead of its IPO, Indian pesticides limited has raised Rs 240 crore from anchor investors at the higher end of the price band. Overall, the IPO size is Rs 800 crores. Among the anchor investors are SBI mutual fund, Tata mutual fund, and Nippon India mutual fund. Foreign investors include Abu Dhabi Investment Authority, Tara Emerging Asia Liquid Fund and BNP Paribas.

"We have managed to bounce from the support zone of 15500-15450, but now it is important for the benchmark to cross the swing high of 15900 for a continuation of the uptrend. The banking space seems to be playing a crucial role now and it could lead the market direction in the near term. Hence, it would be crucial to see whether the banking index makes a move to surpass its important hurdle of 35400 or not. Until then, it is better to stick to a stock specific approach and continue to avoid aggressive bets. The immediate supports for Nifty are placed around 15690 and 15600 while 15900 is the resistance," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.

Moody's Investors Service on Wednesday slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter In its report titled 'Macroeconomics – India: Economic shocks from second COVID wave will not be as severe as last year's', Moody's said high-frequency economic indicators show that the second wave of COVID-19 infections hit India's economy in April and May. With states now easing restrictions, economic activity in May is likely to signify the trough.

~PTI

Midcap and smallcap indices on NSE were back in the green after having slipped earlier along with the benchmark indices.

Kotak Mahindra Bank, TCS, and HCL Technologies are among the worst performers on Sensex at this hour. These are followed by HDFC, Tech Mahindra, and Reliance Industries.

Radhakishan Damani’s Avenue Supermart (DMart) and Naukri.com’s parent company Info Edge shares could be included in the benchmark NSE Nifty 50 index in the forthcoming semi-annual index rebalancing, according to brokerage firm Edelweiss. For semi-annual index review, rebalancing contenders are picked on the basis of their average market capitalization in the previous six months among a host of other factors. The brokerage firm has, however, cautioned that at this juncture there are no confirmed inclusions or exclusions from the index as both the possible inclusion candidates still have certain riders aligned with them.

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Titan Company share price gained as much as 1.5 per cent to Rs 1,784.25 apiece, also a fresh record high in intraday on BSE. Rakesh Jhunjhunwala’s favorite stock surpassed the previous high of Rs 1,770.35 apiece, touched yesterday. With ease in lockdown in several states, improving vaccination rate and expectedly better growth in the jewelry segment in the coming 2-3 years has fueled Titan to an all-time high, analysts said. In less than a span of one year, Titan stock has zoomed 91 per cent from its 52-week low of Rs 935.20.

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Sensex, after having slipped over 150 points was once again seen trimming losses and was now trading flat with a negative bias. Nifty was above 15,750.

Benchmark indices slipped into the negative territory on Wednesday morning. Sensex was down 33 points while Nifty slipped 10 points. 

"The Nifty resisted around the 15900 levels yesterday so we still have to get past that for the markets to start moving up! If we can get past this level with ease, we should be targeting 16100. Good support lies at 15400 and as long as that does not break on a closing basis, dips can be utilized to enter long positions. If we fail to cross 15900, the markets might become range-bound between 15400-15900," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Maruti Suzuki India share price continued to move higher on Wednesday, extending Tuesday's rally in the stock. The share price was up 1.83% trading at Rs 7,397 apeice. 

The Nifty smallcap 50 index was down 0.8% on Wednesday morning. However, the broader smallcap index the smallcap 250 was 0.21%.

On the NSE, the midcap indices were outperforming the benchmark indices Nifty Midcap 50 was up 0.34% while Nifty 50 traded flat.

Sensex slipped into the red on Wednesday as indices continued to fall. Index heavyweights such as Reliance Industries, HDFC Bank, and Kotak Mahindra Bank were among the laggards

Bank Nifty gave up early gains to trade flat. Bandhan Bank, Kotak Mahindra Bank, Axis Bank, and HDFC Bank were the laggards pulling the index lower.

"The Fed chief Jerome Powell's reiteration that inflation in the US is transitory and confined to a few goods & services is good news for markets. The US 10-year bond yield is unlikely to cross the recent high of 1.74%  anytime soon. The equity bulls are consistently winning against bond bears. This ferocious bull run has made India the best performing large market with a YTD appreciation of 12.81% in Nifty. The MSCI India valuation is now at a 55%  premium to MSCI Emerging Market Index. The market is discounting an expected 35% growth in Nifty earnings in FY22. This sharp rebound in earnings is achievable if a brutal third wave of the pandemic doesn't strike. Top-quality financials offer buying opportunities on declines," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

The volatility index was up in the green on Wednesday morning as benchmark indices moved frantically. India VIX was up 0.69%.

Gold prices in India gained on Wednesday, on the back of positive global cues after US Federal Reserve Chair Jerome Powell vowed not to raise interest rates too quickly. On Multi Commodity Exchange, gold August futures were trading Rs 80 or 0.17 per cent up at Rs 47,091 per 10 gram, as against the previous close of Rs 47,011. Silver July futures were trading at Rs 67,819 per kg. Silver futures ended at Rs 67,515 per kg in the previous session. 

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All Sectoral indices were trading in the green on Wednesday morning. Bank Nifty was up 0.26%, Nifty PSU Bank index was up 0.46%.

Titan was the top Sensex gainer on the opening bell as share price jumped 1.3%. This was followed by IndusInd Bank and Mahindra & Mahindra. 

Sensex and Nifty began the day's trade in the green. Sensex opened above 52,800 while Nifty was closing in on 15,850. 

Sensex and Nifty ended the pre-open session near all-time highs on Wednesday morning. Sensex jumped 300 points while Nifty was up 90 points. 

For Nifty 15670 and 15800 are important trading areas in the market. Keep a stop loss of 15550 and buy up to 15700/15650. Be prepared above 15900 for 16050/16150 levels. If the market takes time to surpass the 15900 levels, the momentum would shift in defensive sectors (FMCG, technology and pharmaceuticals). However, after the dismissal of 15900, the commodities and financial stocks would support the market to surpass 16000 levels.

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India’s capital markets have seen a massive influx of new investors, along with the stellar share market rally after the coronavirus pandemic last year. With it, the popularity of passive investing, through index funds and ETFs, has gained momentum. Nippon Life India Asset Management, one of the veterans in passive investing, has 22 ETFs with assets under management worth Rs 40,000 crore.

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Sensex and Nifty moved higher during the pre-open session on Wednesday morning. Sensex was above 52,800 while Nifty crosses 15,800.

"Selling towards the end of the day ensured that Nifty filled the gap that it had formed in the morning. Market-wide rollovers and Nifty rollovers are in line with average," said Rahul Sharma, Head Technical Research, JM Financial. "Bullish above 15,800. Resistance is placed at 15,900 while 15,650-15,700 should provide support for the market," he added.

BSE Sensex and Nifty 50 were set to see a gap-up start on Wednesday, as suggested by trends on SGX Nifty. Nifty futures moved higher in trade, gaining 68.50 points or 0.43 per cent to 15,838.50 on Singaporean Exchange. Chartists see further choppiness ahead due to scheduled derivatives expiry tomorrow. In today’s trade, investors will keep tabs on stock-specific moves, Q4 results, crude oil prices, rupee movement against dollar, and other global developments.

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Nifty finds support around 15,700 while 15,900 will act as resistance on the upside. Bank Nifty finds support around 34,666 while 35,282 will act as resistance

~ IIFL Securities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: The price of Petrol and Diesel was left unchanged on Wednesday by oil marketing companies. Petrol price in Delhi today stands at Rs 97.50 per litre while Diesel in the capital city is retailing at Rs 88.23 per litre today. Fuel prices have been hiked 28 times since May 4, with the most recet hike yesterday. The price of petrol in Delhi has increased by Rs 6.81, while diesel price has surged Rs 7.18 per litre since the rates started increasing. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.

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"The short term uptrend, after a fine upside bounce of Monday is still intact. Any weakness from here is going to be a buy on dips opportunity for the short term. We expect Nifty to challenge upper 15900 levels again in the next few sessions and a sustainable move above this area could open more upside towards 16200 levels. Immediate support is placed at 15650," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.