Dalal Street Corner: Markets witness jittery performance, slip for third day – what investors should do on Friday

On the back of mute global cues, the Indian markets on Thursday witnessed a jittery performance. The BSE Sensex slipped nearly 450 points, to give up the 60000-mark and the Nifty50 too fell below the 18000-mark, after struggling for the last two sessions. The slump was mainly led by banks and financials.

Even the broader markets — mid and small-cap — tumbled by 0.66 and 0.45 per cent, respectively, joining the declining party with the benchmarks. While the Nifty Bank, a key driver of the Nifty index, lead to the maximum surge in the index. The banking index slipped nearly 1.2 per cent to 38560.2 at the close. 

See Zee Business Live TV Streaming Below:

Muted Asian markets, along with 31-year high US inflation, made the market sentiment nervous and banking and financial heavyweights such as HDFC Bank, ICICI Bank, SBI and Bajaj Finserv lead the drag in the market, supported by other FMCG and pharma stocks.

Of all 50 scrips on the Nifty, only 8 advanced at the close, in which Titan became the top gainer to surge around 2 per cent, followed by Hindalco up over 1 per cent. While JSW Steel, M&M, TCS, Coal India, Reliance, and IndusInd Bank each gained marginally at the market close.

Counter from broader markets such as Monte Carlo shares hit a new 52-week high and were also locked at a 20 per cent upper circuit on the back of strong Q2 results. Similarly, despite losses being widening, the food delivery aggregator Zomato’s shares jumped around 5 per cent at the market close.

While other stocks that shone in the otherwise negative market are CRISIL Ltd, Affle India, General Insurance Corporation among other mid and small-cap space stocks today. On the second day, after its bumper debut on Wednesday, even Nykaa shares grew around 1.5 per cent at the close.

Till 4:47 pm, the two live initial public offers — Sapphire Foods and Latent Analytic View — have been oversubscribed by 6.62 and 22.87 times, respectively. It’s the last today for the former to bid its IPO for and the latter is likely to conclude its second bidding in another few minutes. 

According to Senior Technical Analyst at LKP Securities, Rohit Singre, “Index showed selling pressure for the third consecutive session and closed a day at 17874 with a loss of nearly one percent. The index has shown some pullback after hitting a good demand zone of 17800 in the last hour.”

He suggests, “17800 will be first good support for coming session followed by 17700 zones, and any dip near said levels will be buying opportunity on the positional basis with stop loss below 17600, the immediate hurdle is coming near 17940-18050 zone and new breakouts expected.”

“The market suggests that 17600-17800 will act as a support zone. If these levels are sustained a bounce-back can be expected. Technical indicators suggest a volatile movement in the market,” Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research said.

On a fundamental basis, “Global inflationary pressure, following upsetting US inflation data, forced the domestic market to trade with deep cuts,” Vinod Nair, Research Head Geojit Financial Services said.

He mentions, the US inflation hit a 30-year high level beating the market expectations adding fears of an earlier than expected rate hike, while US bond yields shot higher. 

“Rising inflationary pressure along with prospects of an early rate hike can keep the domestic market on edge as such indicators tempt foreign investors to pump out liquidity from emerging markets like India,” the Geojit Financial Services research head added.