Sensex sheds 218 points, Nifty slips below 10,950 on negative global cues; Tata Steel dips 7%

Jayant Manglik, President, Religare Broking

Nifty started the week on feeble note and lost over half a percent. Initially, it opened flat but weak macroeconomic data viz. widening trade deficit and news of WPI inflation touching 4-year high dampened the sentiment. Weak global cues deteriorated the conditions further and triggered selling across the board. Mostly sectoral indices traded under pressure wherein pharma, metal and realty lost maximum. Besides, sharp plunge was witnessed on broader front and both the broader market indices ended with deep cut.

Continuous decline on broader front has pushed the stocks in extreme oversold zone so we may see some pause or rebound prior to further slide. However, we advise to avoid catching falling knives and wait for clarity. Investors, on the other hand, should see this correction as opportunity and gradually start adding fundamentally sound stocks with long term view as they're now available at good bargain. 

Market breadth sharply negative 

Market breadth, indicating the overall health of the market, turned sharply negative negative. On the BSE, 2,052 stocks declined, 546 stocks rallied, while 179 stocks remained unchanged.

Markets at close

The Sensex ended at 36,323, down 217.86 points, while the broader Nifty50 settled at 10,936, down 82.05 points. In the broader market, the BSE Midcap and the BSE Smallcap indices slipped 2.5 per cent each, underperforming the benchmark indices.

Infosys market cap sets new record at Rs 3 lakh crore; should you buy?

Infosys June quarter numbers may have come in below expectations, but the announcement of bonus issue perked up investor sentiment with the stock crossing Rs 3 lakh crore in market capitalisation for the first time ever as it hit a new high on Monday. Infosys share price rallied nearly 6 per cent to Rs 1384.40, its lifetime high level.  Infosys share price had hit its previous high of Rs 1,358 on July 3, 2018 in intra-day trade.

Sensex Heatmap 

Source: BSE

Hold PC Jeweller stock? Massive reason to worry now

PC Jeweller share price plunged over 22 per cent on Monday after the controversy-ridden jewellery firm withdrew its buyback offer worth Rs 424 it announced in May. Reacting to the news, the stock tanked as much as 22.17 per cent to Rs 93.35 on the BSE.  PC Jeweller share price has fallen 79 per cent so far this year as it dealt with management and block deal issues. To assuage investor concerns and build some confidence in the stock, the management of PC Jeweller had announced the buy-back of up to 1,21,14,286 fully paid-up equity shares of Rs 10 each.

Market breadth remains negative

Market breadth, indicating the overall health of the market, remained negative. On the BSE, 1,136 stocks declined, 435 stocks rallied, while 61 stocks remained unchanged.

Broader market

In the broader market, the BSE Midcap and the BSE Smallcap indices slipped nearly 1 per cent each, underperforming the benchmark indices.

Markets at open

At 9:30 am, the Sensex was trading at 36,465, down 75.97 points, while the broader Nifty50 was ruling at 10,979, down 39.40 points.

Source: BSE

Anil Singhvi's Market Strategy for July 16: Short-term trend of market positive; sell PC Jewellers

11,000 and 27,000 are going to be a deciding level on Nifty and BankNifty respectively. Small trade range on Nifty stands between 11,000-11,075 and the bigger range lies between 10,950-11,100. In the case of BankNifty, the trading range stands at 26,775-27,150. 

FAST MONEY: Here are top intraday trading tips

Aurobindo Pharma (Buy)  

Target: Rs 625  
Stoploss: Rs 597

• The company to acquire Canadian pharma company Apotex International's commercial operations. 
• The acquisition will take place in five European countries for €74 million in an all-cash deal. 

Stocks in news: Infosys, PC Jeweller among top five stocks in focus today

Infosys: Infosys, country's second largest services firm, reported Q1FY19 results on Friday that remained below Street expectations. The IT giant reported Rs 3,613 crore consolidated net profit for the first quarter of fiscal 2018-19, registering a 3.7 per cent annual growth from Rs 3,483 crore in the same period year ago. Sequentially, however, net profit declined 2.1 per cent from Rs 3,690 crore a quarter ago.

WATCH VIDEO: Markets on Friday

Sensex ends flat after opening at record high, Nifty closes above 11,000; RIL, Infosys top gainer

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