Red Day
Bajaj Finance, Titan Company, UltraTech Cement, NTPC, and Bajaj Finserv were top Nifty losses, while Tata Motors, BPCL, Grasim Industries, Eicher Motors, and Adani Enterprises gains
The Indian equity benchmark fell on January 30 after selling in heavyweights, capital goods, power, and FMCG sectors.
The inventors were cautious ahead of the FOMC meeting, interim budget, and Middle East issues.
The Sensex closed down 801.67 points, or 1.11 percent, at 71,139.90, and the Nifty down 215.50 points, or 0.99 percent, at 21,522.10.
Following a strong start, the market erased gains in the early hours and extended losses throughout the day, with selling pressure increasing in the last hour.
Bajaj Finance, Titan Company, UltraTech Cement, NTPC, and Bajaj Finserv were top Nifty losses, while Tata Motors, BPCL, Grasim Industries, Eicher Motors, and Adani Enterprises gained
All sectors except realty and PSU bank ended in the red, with capital goods, FMCG, pharma, and electricity down 0.5-1 percent.
The BSE midcap index fell 0.5 percent, while the smallcap index was steady.
Coromandel International, Voltas, and Bajaj Finserv saw stock volume spikes over 100%.
The build-up was long for Zee Entertainment Enterprises, HPCL, and BHEL, but short for Coromandel International, Trent, and Bajaj Finance.
Apar Industries, Bank of India, BEML, BHEL, Birla Corporation, Godrej Industries, HPCL, HP Adhesives, Indian Bank, IRB Infrastructure, JSW Holdings, LIC Housing Finance, Nippon Life India Asset Management, Oil India, Petronet LNG, Prime Focus, Savita Oil Technologies, Shakti Pumps, Shriram Finance, Star Cement, Tata Investment Corporation, Tata Motors DVR, and UTI Asset Management Company reached 52-week highs on BSE. Click for the complete list.
January 31 outlook
As forecast yesterday, the Index developed a bearish Dark Cloud Cover candlestick pattern as bears ruled throughout the day, hitting the 21,750 resistance level. After losing 215.50 points, the Index closed at 21,522.10. PSU Banking outperformed, but profit-booking correction hurt Energy.
Midcap index sold down but outperformed the Nifty, while Smallcap ended green. We think the right shoulder of an Inverted Head & Shoulder formation does most of the damage. Support will be 21,460 and resistance 21,680 on the downside.
Nifty fluctuated throughout the day, trending bearish. A black cloud cover on the daily chart suggests a pessimistic outlook. Lower support is 21500. A sharp drop below this level could trigger a market correction. Conversely, continuous trading over 21500 may boost the market.
| FII Bought | 110.01 Cr |
| DII Bought | 3,221.34 Cr |
Indian Market Stocks
| Sensex | -801.67 | -1.11% | 71,139.90 |
| Nifty 50 | -215.50 | -0.99% | 21,522.10 |
| Bank Nifty | -74.60 | -0.16% | 45,367.75 |
Market Movers
| BPCL | 11.55 2.34% | Bajaj Finance | -374.45 -5.21% |
| Tata Motors | 17.85 2.12% | Titan Company | -130.90 -3.39% |
| Grasim | 21.65 1.03% | UltraTechCement | -310.45 -3.02% |
| Eicher Motors | 35.70 0.97% | Bajaj Finserv | -46.40 -2.83% |
| Adani Enterpris | 50.35 4.39% | NTPC | -9.10 -2.80% |
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All sectoral indices except Nifty realty ended in the red. The financial, pharma, bank, IT, FMCG, and healthcare index fell over 1%.
The Sensex and Nifty fell again as banks and IT sectors fell, FII selling and dwindling chances of US rate cuts weighed on mood.
At closure, the Sensex was down 359.64 points or 0.51 percent at 70,700.67 while the Nifty was down 101.40 points or 0.47 percent at 21,352.60. About 1,813 shares rose, 1,423 fell, and 55 remained unchanged.
Midcap indices retreated, although the Nifty smallcap rose 0.5 percent.
Every sectoral index except Nifty Realty ended in the red. The financial, pharma, bank, IT, FMCG, and healthcare index fell over 1%.
The market will be closed on January 26 for Republic Day.
Analysts attributed the losses to FII selling, WTI oil rise, and fading US rate drop chances.
Watch our market blog for live updates.
Was the fix anticipated?
Due to inflated valuations in most mid- and small-cap equities without fundamental or technical support, a market correction was needed. Tradejini COO Trivesh D expects the correction to last a few more sessions before account-Budget 2024.
Data suggests that the market is negative before the budget, and February has averaged 1.4 percent decline over the last decade. This tendency should continue.
Technical View
The Nifty has support at 21,100 and resistance at 21,400. Vaishali Parekh, vice-president of technical research at Prabhudas Lilladher, said a drop below 21,000 will weaken the trend and investors should expect additional decline.
January derivatives contract expiration and earnings season will keep volatility high.
Market Market Market Market Market
After a shaky start, the Nifty was volatile all day. The index showed hints of reversal on the hourly chart. However, it closed below 21500 resistance. A decisive move above 21500 might boost the index. Downside support is 21400-21350. A breach above 21500 might push the index above 21700.
Markets recovered from Tuesday’s drop and rose about 1% amid turbulence. Initial sentiment was negative, but select heavyweights rebounded to stop the loss and assist the Nifty close in the green. While banking and realty ended weak, metal, energy, and IT performed strongly. The broader indices recovered and gained nearly 1.5 percent each.
Consolidation is possible as the banking index tested its 200 EMA on Wednesday. However, other crucial sectors would struggle to boost Nifty. We recommend stock-specific trading and maintaining positions on both sides.
For Nifty, the immediate resistance is around 22,050 and support at 21,500 and 21,400, Nada added.For Bank Nifty 48,000 is a key obstacle, underlined by strong Call writing. A decisive breakout above the may unleash a rapid short-covering surge. Immediate support is at 47,200-47000, a break of which will probably prompt severe selling pressure, perhaps leading to a fall, he added.