Indian benchmark indices ended lower for the sixth consecutive session on May 13, as late selling in power, metal and financial names undid the day’s gains, pulling the indices lower yet again.
At close, the Sensex was down 136.69 points, or 0.26 percent, at 52,793.62 and the Nifty was down 25.80 points, or 0.16 percent, at 15,782.20.
For the week, the Sensex declined 2,041.96 points, or 3.72 percent, and the Nifty shed 629.05 points, or 3.83 percent.
The market started the day on a higher note on strong Asian cues and remained in the positive territory before witnessing selling in the final hour.
“High domestic inflation data failed to spook investors since the recent selloff has already absorbed the ongoing uncertainties in the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
Domestic markets rebounded as buyers used the recent correction to their advantage following the trend of the global market, he said.
“However, the weakness seen in the banking sector triggered a late selloff. The US Fed cautioned against an aggressive policy stance in order to bring inflation under the Fed’s comfort zone of 2 percent,” he added.
Hindalco Industries, SBI, JSW Steel, NTPC and ICICI Bank were among the top Nifty losers. Gainers included Tata Motors, Sun Pharma, M&M, ITC and HUL.
On the sectoral front, the Nifty bank, energy and metal indices shed 1-2 percent, while auto, FMCG and pharma indices added 1-2 percent.
Stocks and sectors
On the BSE, bank, metal and power indices ended 1-2 percent lower. On the other hand, auto, FMCG, healthcare indices rose 1-2 percent and oil & gas and capital goods indices added 0.5 percent each.
Broader markets outperformed the main indices, with BSE midcap index rising 0.8 percent and smallcap indices 1.3 percent.
A long build-up was seen in RBL Bank, Tata Motors and MRF, while a short build-up was seen in GNFC, Indus Towers and Honeywell Automation.
More than 100 stocks, including Sequent Scientific, SBI Cards, SAIL, MOIL, HDFC Bank and DB Corp, touched their 52-week low on the BSE.
Among individual stocks, a volume spike of more than 100 percent was seen in Honeywell Automation, SBI and MRF.
Outlook for May 16
Amol Athawale, Deputy Vice President- Technical Research, Kotak Securities
The fall came despite an upsurge seen in other Asian gauges, as the fear of rising inflation and expectations of more rate hikes in the near term weighed on investors.
It looks like traders are selling at every opportunity, as there seems to be no respite from negative news.
After a sharp price correction, on weekly charts, the Nifty formed a bearish candle and after a long time, it closed below the 16,000 mark, which is broadly negative.
For traders, 15,900 will act as a key resistance level, below which the index can slip to 15,650. However, 15,900 would be the immediate trend reversal level for the bulls, above which we can see a strong pullback rally to 16,100-16,300.
Ajit Mishra, VP-Research, Religare Broking
Global headwinds are weighing on the sentiment and the domestic factors are also not very encouraging. The fresh selling pressure in the banking pack is adding to the negativity.
We thus reiterate our negative view and suggest continuing with the “sell-on-the-rise” approach. Since most sectors are reeling under pressure, participants should align their positions accordingly and avoid contrarian bets.
Palak Kothari, Research Associate, Choice Broking
Technically, the Nifty has formed a bearish candle on the weekly chart, which indicates downside movement for the upcoming session.
Moreover, the Nifty has faced resistance from the rising trendline and showed selling pressure, a sign of selling at higher levels.
The Nifty has stayed below the neckline of the Head & Shoulder pattern, which indicates a southward direction for the upcoming session. However, momentum indicators MACD and Stochastic were trading with a negative crossover and entered the oversold zone.
However, there is still no reversal sign. The Nifty may find support around 15,700 levels, while on the upside, 16,100 may act as an immediate hurdle, crossing of which can attract fresh buying.
The Bank Nifty has support at 32,600, while resistance is at 34,000.
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