The benchmark stock market indices took a tumble of around one per cent on Wednesday (April 27), dragged by heavy selling pressure in banking and financial stocks. Banknifty also loosened its grip to end the session at 36028.85 with loss of 375.95 points or 1.03 percent.
All sectoral indices ended on the negative side. Maximum losses came from the Nifty Energy at 1.3 percent while Nifty CPSE lost 1.26 percent. No sector ended on a positive side.
Tracking weakness in the global equities, the Sensex opened deep in the red at 56,983.68 points and slumped to a low of 56,584.04 points in the intra-day. Sensex has registered losses in three out of the last four trading sessions. The benchmark index had gained 776.72 points or 1.37 per cent on Tuesday.
The Nifty 50 had gained 246.85 points or 1.46 per cent on Tuesday.
At close, the Sensex was down 537.22 points or 0.94 percent at 56,819.39. The broader Nifty was down 162.40 points or 0.94 percent at 17,038.40. About 1,146 shares have advanced, 2140 shares declined, and 107 shares are unchanged.
Banking, financial, IT stocks witness selling pressure
There was heavy selling pressure in banking and financial stocks. Bajaj Finance tumbled 7.24 percent to Rs 6716.65. Bajaj Finserv dipped 3.88 percent to Rs 14828.55. ICICI Bank slumped 2.21 percent to Rs 737.05. State Bank of India dipped 1.78 percent to Rs 497. Axis Bank slipped 1.17 percent to Rs 766.10.
Some IT stocks also witnessed heavy selling pressure. Wipro slumped 1.91 percent to Rs 519.25. Infosys slipped 1.68 percent to Rs 1553.20. However, TCS rose 0.47 percent to Rs 3561.30.
Only six of the 30 scrips that are part of the benchmark Sensex closed in the positive. Reliance Industries share price crossed touched a new high at Rs 2827.10. The market cap also crossed Rs 19 lakh crore for the first time. Tata Steel jumped 1.05 percent to Rs 1246.50. Asian Paints rose 0.72 percent to Rs 3148. TCS, HCL Technologies, and HDFC Bank also closed in the positive.
Nifty in a corrective phase
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said “For the short-term Nifty remains in a corrective phase with resistance placed at 17315 levels. From the medium term perspective, we broadly remain positive and advice accumulating on dips. We see value in select financial and energy stocks while IT stocks are expected to trade with negative bias.”.
Sumeet Bagadia, Executive Director, Choice Broking, said, Coming at the end of monthly expiry, investors and traders keep guessing whether to take any directional position for next month. INDIA VIX has raised 7.4 percent intraday and closed at 20.61 levels.
In the daily chart, the index has given closing below 200-Daily Simple Moving Averages indicates weakness in the counter. From the Fibonacci retrenchment 16,880 is the immediate support level. Short term investors may opt for stock specific action with positive bias above 17,250 levels. However, the Nifty is forming a Head & Shoulder pattern on the daily chart, which will be confirmed if the neckline remaining at 16,800 would be broken. Indicators such as RSI & MACD are signaling weakness on daily charts which indicates downside movement can be seen.
The Nifty may find support around 16,880 levels followed by 16,800, while on the upside 17200 may act as an immediate hurdle for the index. On the other hand, Bank nifty has support at 35,500 levels while resistance at 36,600 levels, Bagadia added.
On Wednesday, key Benchmark indices corrected sharply, with the Nifty ending 160 points lower tracking weak global cues, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. All the major sectoral indices ended in the red, but financials lost the most, shedding over 1.5 percent. Technically, the market is witnessing non directional activity, and once again the index succeeded to close below the 50 l-day SMA and post gap down opening, it has also formed a bearish candle. For the traders now, 17,125 would be the immediate resistance level and if the index clears the same then it may hit the level of 17,200 However, trading below 17,000 could increase further weakness. Below 17,000 chances of Nifty hitting 16,900-16,850 appears bright, Chouhan said.
Global share prices fall on fears of further China lockdowns
Shares in the US and Asia have fallen on fears about the impact of lockdowns in China on global economic growth, BBC reported.
On Tuesday, the technology-heavy Nasdaq Composite index closed at its lowest level since late 2020.
Tesla was a big faller, with more than $125 bn wiped off its market value as boss Elon Musk moves ahead with his takeover of Twitter.
Concerns about earnings reports from some of the world's biggest technology firms also weighed on markets.
At the same time, news that Russia will cut gas supplies to Poland and Bulgaria also added to the negative sentiment, BBC reported.
Investors were already worried about the prospects for aggressive interest rate hikes in the US and around the world to combat rising global inflation and the war in Ukraine.
Japan's Nikkei 225 index closed 1.2 percent lower, while South Korea's Kospi index fell by 1.1 percent.That followed stock market falls in New York, with the Dow Jones Industrial Average closing 2.4 per cent lower and the Nasdaq losing almost 4 per cent on Tuesday, BBC reported.
(With inputs from Agencies)
