Sensex falls 256 points, Nifty barely holds 19,250; Gokaldas Exports, Medplus Health down up to 10%

Indian equity benchmarks on Thursday traded lower ahead of the gross domestic product (GDP) data for the June quarter. The domestic indices were dragged by bank, financial, consumer goods and energy stocks. The 30-share BSE Sensex pack fell 256 points or 0.39 per cent to close at 64,831; while the broader NSE Nifty index moved 94 points or 0.48 per cent down to settle at 19,254. Although, mid and smallcap shares continued to outperform the blue-chips as the Nifty Midcap 100 edged 0.11 per cent higher and Nifty Smallcap 100 rose 0.81 per cent. Fear gauge India VIX rose 2.22 per cent to 12.06. Most Asian stocks settled lower today.

The domestic GDP data for the April-June quarter is scheduled to be released post-market hours. "Market experiencing declines ahead of the release of India's GDP data," said Vinod Nair, Head of Research at Geojit Financial Services.

12 out of the 15 sectoral indices on NSE settled in the red. Sub-indices Nifty Bank, Nifty Financial Services, Nifty FMCG, and Nifty Oil & Gas underperformed the Nifty index by falling 0.55 per cent, 0.53 per cent, 0.82 per cent and 1.04 per cent, respectively.

On the stock-specific front, Adani Enterprises was the top loser in the Nifty pack as the stock cracked 3.51 per cent to settle at Rs 2,425. BPCL, Adani Ports, Britannia and Eicher Motors were also among the top laggards.

Adani Group stocks dropped after a report by a non-profit media organisation said the family's partners used 'opaque' funds to invest in the group stocks. The group, however, rejected the report.

In contrast, Jio Financial Services, Maruti, HDFC Life, Cipla and Tata Steel were among the top gainers on Nifty.

The overall market breadth was slightly positive as 1,837 shares advanced while 1,784 declined on BSE.

On BSE, index heavyweights such as HDFC Bank, Reliance Industries (RIL), Tata Consultancy Services (TCS), ITC, Bajaj Finance were among the top drags.

Also, shares of Gokaldas Exports, Medplus Health, TCNS Clothing, Torrent Pharma, Reliance Power and Suzlon Energy slumped up to 9.74 per cent.

On the flipside, Alok Industries, ION Exchange, Ramkrishna Forgings, Gland Pharma and Titagarh Rail Systems zoomed up to 10.92 per cent

Nifty and Nifty Bank outlooks

"Nifty faced persistent resistance at the 21-day Exponential Moving Average (21EMA), which resulted in a market correction. Two consecutive unsuccessful attempts to surpass the critical 21EMA level led to an increase in selling pressure. The overall sentiment remains pessimistic, with the likelihood of any upward rallies being met with selling activity. On the downside, the initial support level is placed at 19,200. If the index falls below the 19,200 level, it could potentially move towards the 19,000 mark. The sell on rise strategy is expected to favour the traders until the Nifty convincingly surpasses the 19,500 level," said Rupak De, Senior Technical analyst at LKP Securities.

"During the last day of August expiry, Nifty Bank index faced persistent selling pressure from the bears, ultimately leading to a negative close of 0.35 per cent for the day. The upcoming sessions are crucial for the bulls as they aim to defend the critical support zone of 44,000-43,800. Failure to hold this support level could trigger additional declines, potentially pushing the index towards the 43,000 mark. On the upside, the immediate obstacle for the index lies at 44200. If the index manages to breach this level, it could set the stage for further upward movement towards the 44,500 level," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

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Also read: Nifty, Sensex end in red; Maruti, Cipla top gainers; Adani Enterprises, Adani Ports top losers; Nazara Tech, Aeroflex Industries, other stocks that buzzed in trade on August 31, 2023