Market indices reversed trend and fell on Monday, amid heavy selling pressure in metal and realty stocks, tracking cues from weak global equities. Extending fall for the second straight session, Sensex ended 470 points lower at 48,564 and Nifty fell by 152 points to 14,281. In the last two sessions, Sensex has lost 1,019 points and Nifty is down 313 points.
Here are 10 things to know about the market movement today:
1. SBI, HDFC Bank, ICICI Bank, RIL were the only gainers on Sensex. On the other hand, Nestle, Dr Reddy, Maruti, HCL Tech, Asian Paints, ITC, Nestle, HUL were among the top losers today.
2. On Friday, Sensex ended 549 points lower at 49,034 and Nifty fell 161 points to 14,433.
3. Asian markets were trading mixed today with a negative bias as investors reacted to China's GDP number which rose 2.3% against expectation of 2% However, retail sales contracted 3.9%. On Friday, US markets had closed lower as investors analysed Biden's rescue plan and earnings from major banks. US markets are shut today for Martin Luther King holiday. European shares were also trading on a negative note in early deals as investors analysed new lockdown restrictions and resurgence of covid-19 in China added more uncertainty.
4. Expressing views on Nifty's technical outlook, Ashis Biswas, head of Technical research at CapitalVia Global Research Limited said," The market manages to hold above the Nifty 50 Index support zone of 14170-14230. The technical factors are aligned to support a range-bound market movement in the coming week. Therefore, the short-term traders should use the rally to exit while buying any dip toward the support level around 14170-14230 (considered best practice in a volatile market). The market breadth to deteriorate, indicating a likelihood of higher volatility."
5. On market's volatility today, Keshav Lahoti, Associate Equity Analyst, Angel Broking said,"The Nifty closed 1% down due to weak global cues. Due to profit booking, the metal index corrected the most by 4%. Only six shares of Nifty closed in green. HDFC Bank closed up by 1.2% after its Q3 net profit rose 18 percent on improved asset quality. Metropolis Healthcare advanced 1.1% after the diagnostic chain said it would acquire Dr Ganesan's Hitech Diagnostic Centre Pvt Ltd in a cash and stock combination deal. We believe now the market movement will depend upon global cues, quarterly results and management commentary."
6. All the sector-based indices closed deep in red today, with over 4% fall registered in metal index, followed by 2.5% drop each in pharma and PSU bank index, and over 2% decline in auto, media and realty stocks.
7. On Nifty's technical support and resistance, Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said," We have broken the crucial support of 14350 and should ideally be headed further south to levels closer to 14150 and then 14000. Markets have become volatile and strict stops must be placed on all trades. 14500 has become a resistance zone and any rally up can be utilized to short the Nifty for lower targets."
8. Sensex lost 630 points intraday to 48,403 against the previous close of 49,034. Nifty too fell 220 points to its intraday low of 14,263 against the previous close of 14,433.
9. NSE VIX, the Indian markets volatility index soared over 5% today as equities witnessed correction for the second consecutive day. Traders said weak global cues continued to weigh on investors due deepening economic devastation from the pandemic despite hopes of COVID-19 vaccines and US economic relief package.