Share Market Highlights: Sensex nosedives, ends at 59189, Nifty closes at 17646; IndusInd Bank top index drag

Domestic equity markets witnessed heightened volatility on Wednesday as headline indices plummeted during the dying hours of trade to finish deep in red.

A daily closing below 17400 could lead to a sharp correction till 16950. Nifty Bank looks weaker and has been unable to close above 38000 successfully. Technically, a daily close below 36860 could trigger a sell-off till 35900 & 35150. Investors should stay cautious as markets could get volatile in the coming weeks. Pavitraa Shetty, Co-founder & Trainer, Tips2Trades

HDFC twins and Bajaj Finance were the only stocks trading in green

BSE Sensex tumbled 630 points or 1.06 per cent to 59,114 just ahead of closing

Bank Nifty continues to improve its relative strength against the Nifty, it is trapped in a broad consolidation range between 37000-38100 levels. Bank Nifty is likely to oscillate between this range and consolidate over the coming days. Weakness will creep in only if Bank Nifty slips below 37000. Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

NIFTY has presently formed a broad consolidation zone of itself with the range of 17450-17950 levels. The immediate resistance placed at 17800, the index will stay under consolidation so long as it keeps its head above the 17450 levels. Unless this level is violated on the downside, no directional weakness except some consolidation is expected in Nifty. Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

Nifty gave up 17650 just ahead of the closing bell as benchmark indices continued to extend losses on Wednesday afternoon. 

Check live: Nifty 50

Textile stocks were in focus on Wednesday after the Cabinet approved Mega Textile Park Scheme for Rs 4,445 crore. Stocks such as Shiva Texyarn, Jindal Worldwide, Loyal Textile Mills, others rallied up to 20 per cent.

All sectoral indices were trading with losses ahead of the closing bell on Wednesday. Benchmark indices dived into the red on Wednesday.

KPR Mill and Bombay Dyeing shares were trading with gains on Wednesday while other textile stocks such as LUX Industries, Alok Industries, and Arvind Fashion were down in red.

Bank Nifty turned negative with minutes left before the closing bell. The banking index was down 0.51% ahead fo the closing bell, sitting at 37,546.

India VIX was up 5% on Wednesday as domestic markets tanked with minutes left before the closing bell. 

Sensex tanked more than 500 points with half an hour left before the closing bell. Nifty was nearing 17,650. 

Rakesh Jhunjhunwala-owned Federal Bank’s share price may rally as much as 30% from current levels on the back of a sharp recovery in business, according to various brokerage firms. The private bank has seen a strong recovery after the second wave of covid-19, and has reported a healthy 9.7% on-year growth in gross advances while the total deposit base has grown by 10% during the same period. The midcap bank stock has been in Rakesh Jhunjhunwala’s portfolio since at least 2016. Federal Bank’s share price is currently trading at Rs 85 per share, up 25% so far this year.

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Only Nifty Bank, Nifty Financial Services, and Nifty Private Bank index were trading with gains among sectoral indices on NSE. 

The Chinese resolve to comply with Global emission targets is laudable. The measures which have been taken to cut emissions include a decline in power supply to certain provinces which were consuming more than budgeted power. This cut in power supply has now meant that the industries operating out of such provinces will have limited ability to produce goods and operate on a more rationed basis.

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Only six Sensex stocks were up with gains on Wednesday afternoon, while others were in the red. HDFC Bank was the top gainer, followed by HDFC, Bajaj Finance, Axis Bank, TCS, and Kotak Mahindra Bank.

Nifty Metal was down 2.2% on Wednesday as Dalal Street slipped into the red. National Aluminium, Hindalco, and Vedanta were among the top drags. 

Bank Nifty is up in the green while broader markets sit deep in red. Bandhan Bank, HDFC Bank, and Axis Bank were among the gainers.

We forecast CPI inflation to moderate to 4.62% in September, on declines in prices perishable foods, while a diverse set of temporary shocks should push up core inflation. However, elevated global commodity prices continues to exert upward pressure on India’s import basket. Overall, we continue to forecast that CPI inflation will average 5.4% in FY2021-22, with risks balanced.

~ Barclay's Bank

Broader markets mirrored the fall and slipped into the negative on Wednesday. Nifty Midcap 50 was down 1% while Nifty Smallcap 50 slipped 0.24%. 

India VIX, the volatility gauge, jumped more than 2% on Wednesday as benchmark indices slipped into the negative territory. India VIX was nearing 17 levels.

"Setup remains bullish above 17,730. Any dip can be utilised as buying opportunity. Resistance seen at 17,850 and 17,945," said Rahul Sharma, Director & Head - Research, JM Financial.

Sensex was down more than 100 points, slipping below 59,700 while Nifty 50 gave up 17,800 as indices slipped into the red. 

HDFC Bank and HDFC are the top gainers on Sensex at this hour. These are followed by Bajaj Finance, Axis Bank, and Larsen & Toubro.

NSE Nifty 50 may rise to 20,000 while S&P BSE Sensex is expected to reach 66,600 in the next one year, helped by pro-growth policies of the government and stronger corporate earnings, ICICI Direct said in a note. The brokerage firm believes that a variety of fundamental factors will drive markets higher going forward. So far this calendar year, Sensex and Nifty are up 25%. Dalal Street has jumped over the wall of worries, be it the second wave of covid-19 or the fears of a third wave. Nifty is currently near its all-time highs and is expected to hit 18,000 soon for the first time while Sensex is close to regaining 60,000.

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India VIX, the volatility index was down in the red on Wednesday as headline indices traded flat with positive bias. Indi VIX dropped 1.3%, sitting just above 16 levels.

Sensex and Nifty were back in the positive territory, recouping all losses. The 30-stock Sensex neared 59,800 while Nifty 50 was inchign closer to 17,850.

Sensex was down 80 points while Nifty was just shy of 17,800 after the initial hour of trade as headline indices gave up gains and turned red. 

Long build up in the Bank Nifty futures, short covering in the Nifty Futures and rise in the Nifty Open Interest Put-Call ratio on the back of Put writing at 17700 - 17800 levels Indicates that one should continue to remain optimistic for the markets. Therefore, our advise is to accumulate long positions with trailing SL of 17700 level. On the higher side 17900-18000 levels will act as a resistance. In the Bank Nifty, where we have seen long build-up, our advice is to go long with SL of 37300 levels. HDFC Securities

The Nifty is trading well above the resistance zone of 17700 and hence we should be heading to 18050. Since the support for this market is at 17500-17600 which makes an unfavorable risk-reward, traders should look at picking up long positions on dips or during intraday corrections. With a smaller stop, they can project higher targets. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Sensex was down from highs but still in the green while Nifty 50 was holding comfortably above 17,800. India VIX turned red.

Gold prices in India fell on Wednesday, mirroring weak international prices on firmer US dollar. On Multi Commodity Exchange, gold December futures were trading Rs 102 or 0.22 per cent down at Rs 46,655 per 10 gram. Yesterday, it closed at Rs 46,757 per 10 grams. Silver December futures were ruling Rs 242 or 0.40 per cent down at Rs 60,744 per kg, as against the previous close of Rs 60,986 per kg. Globally, yellow metal prices inched lower as a firmer dollar and rise in U.S. Treasury yields weighed on the precious metal’s appeal.

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Bharti Airtel's Rights Entitlements soared higher for the second day on trade, gaining 5% to trade at Rs 214 per unit. The RE units began trading yesterday and will remain listed on the bourses till possibly next week. 

"Nifty closing above 17,800 (On Tuesday) can be seen as a positive sign as result season is also round the corner which can act as positive trigger for nifty to move towards creating a new all time high. If Nifty continues its uptrend, then the level of 17,750 can act as a good support level and can go till the next resistance level which is at 17,935. But on the other hand, if Nifty slip below 17,750 then can show a move till 17,620 level," said Mohit Nigam, Head - PMS, Hem Securities.

Domestic equity markets started trading with gains on Wednesday morning. Broader markets were trading in the green. Bank Nifty was above 37,800.

Sensex was above 59,900 at the end of the pre-open session while Nifty 50 was just shy of 17,900 as headline indices looked set to start in the green. 

Sensex and Nifty were up with gains during the pre-open session. Sensex was seen trading above 60,000 while Nifty reclaimed 17,900.