Taking Stock | Another day of carnage, Sensex tanks 874 points, Nifty below 17,650
Closing Bell: Nifty ends near 17,600, Sensex tanks 874 pts; PSU bank, oil & gas worst hit
The Indian benchmark indices extended the fall for the second consecutive session and lost 1.5 percent on January 27 amid selling seen across sectors, barring pharma and auto, with Adani Group stocks coming under huge selling pressure again.
At close, the Sensex was down 874.16 points or 1.45 percent at 59,330.90, and the Nifty was down 287.70 points or 1.61 percent at 17,604.30. For the week, the benchmarks lost more than 2 percent.
The market started on a negative note and extended the selling as the day progressed, with the Sensex and the Nifty breaking 59,000 and 17,500, intraday. Last-hour buying helped them reduce losses.
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Tata Motors | 445.60 | 26.55 | +6.34% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Adani Enterpris | 2,761.45 | -627.50 | -18.52% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 13089.70 | 132.55 | +1.02% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 3821.05 | -219.25 | -5.43% |
The market was also under pressure amid a decline in Adani group stocks on a report by short-sellers Hindenburg Research that flagged debut concerns and made allegations of stock manipulation, charges which have been denied by the company.
Stocks and sectors
Adani Enterprises, Adani Ports, SBI, ICICI Bank and IndusInd Bank were among the biggest losers on the Nifty, while gainers were Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, ITC and Divis Laboratories.
Among sectors, the Nifty PSU Bank index shed 5.4 percent, the Nifty Energy index lost 5 percent, and the Nifty Bank index fell 3 percent. However, pharma and auto indices gained 0.5-1 percent.
| INDEX | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Sensex | 59,330.90 | -874.16 | -1.45% |
| Nifty 50 | 17,604.35 | -287.60 | -1.61% |
| Nifty Bank | 40,345.30 | -1,302.35 | -3.13% |
NIFTY 50 17,604.35 -287.60 (-1.61%)
| BIGGEST GAINER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Tata Motors | 445.60 | 26.55 | +6.34% |
| BIGGEST LOSER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Adani Enterpris | 2,761.45 | -627.50 | -18.52% |
| BEST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty Auto | 13089.70 | 132.55 | +1.02% |
| WORST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty PSU Bank | 3821.05 | -219.25 | -5.43% |
The BSE midcap index shed 1.2 percent and smallcap index declined 1.9 percent.
On the BSE, the power index lost 6.8 percent, the oil & gas index shed 5.7 percent, and the bank index fell 3 percent. Capital, goods, metal, realty and information technology indices shed 1 percent each. On the other hand, the auto index rose 1 percent and the healthcare index added 0.5 percent.
More than 200 stocks touched their 52-week lows on the BSE, including ACC, Adani Green, Adani Ports, Indus Towers, Voltas, Tide Water, Laurus Labs, Dixon Technologies, Berger Paints, Bata India and Aurobindo Pharma.
However, more than 100 stocks touched their 52-week high including Gravita India, Jyoti, Jindal Saw and Surya Roshni.
Among individual stocks, a volume spike of more than 200 percent was seen in Dixon Technologies, Adani Enterprises and ACC.
A short build-up was seen in Dixon technologies, Indus Towers and Adani Enterprises. A long build-up was seen in Persistent Systems, Tata Motors and Hindustan Copper.
Markets went into a tailspin on broad-based selling pressure as recessionary fears in the west and nervousness ahead of the US FOMC meeting on interest rate decision pummeled stocks at will.
Investors cashed out of banking, power, realty and oil & gas stocks ahead of the budget and pulled down key indices below the psychological levels.
During the week, the Nifty traded below the 20-day SMA (Simple Moving Average) mark and also breached the important support level of 17,800 and also formed a long bearish candle on weekly charts.
Technically, a minor pullback rally is possible if the index trades above 17,650. On the flip side, selling pressure is likely to accelerate only after the dismissal of 17,550 and below the same the index could slip till 17,400. Extended correction could drag the index till the 200-day SMA or 17,300.
The Nifty started the week on a positive note however witnessed steep selling pressure in the second half of the week. As a result, it broke down from the consolidation range, which it was witnessing for the last one month.
It broke the support zone of 17,800-17,760, which will now act as a resistance as per the principle of role reversal.
On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17,550. Today’s low of 17,493 will be a key support. If that is breached then the decline can continue till 17,300.
