scorecardresearchMarket Wrap: Sensex, Nifty extend losses into 2nd consecutive session; mid, smallcaps outperform

Market Wrap: Sensex, Nifty extend losses into 2nd consecutive session; mid, smallcaps outperform

Updated: 05 Jan 2023, 04:38 PM IST
TL;DR.
Sensex closed 304 points, or 0.50 percent, lower at 60,353.27 while Nifty ended at 17,992.15, down 51 points, or 0.28 percent.
Sensex, Nifty extended losses into the second consecutive session on January 5.

Sensex, Nifty extended losses into the second consecutive session on January 5.

Domestic market benchmarks the Sensex and the Nifty ended in the red for the second consecutive session amid mixed global cues on January 5.

While most Asian markets rose on optimism around China reopening, European stocks were lacklustre on concerns over a looming recession.

The investors' risk appetite remained weak after the minutes of the US Fed's last meeting indicated rate hikes are not going to end soon. The Fed cautioned that investors should not underestimate their will to keep interest rates high for a long time.

Sensex opened 190 points higher at 60,847.50 but failed to hold gains and fell as much as 608 points to an intraday low level of 60,049.84.

The index closed 304 points, or 0.50 percent, lower at 60,353.27 while Nifty ended at 17,992.15, down 51 points, or 0.28 percent.

Mid and smallcaps outperformed the benchmarks; the BSE Midcap index rose 0.33 percent while the Smallcap index closed flat.

Nearly 100 stocks, including Abbott India, Anand Rathi Wealth, APAR Industries, Apollo Tyres, Power Finance Corporation, PSP Projects and Sundram Fasteners, hit their 52-week highs in intraday trade.

Oil prices rose as investors turned optimistic about long-term demand. Brent Crude traded two percent higher near the $80 per barrel mark.

The rupee rose 25 paise to close at 82.55 per dollar after the dollar index eased.

Top Sensex gainers: Shares of ITC, NTPC, Hindustan Unilever and Mahindra and Mahindra ended as the top gainers in the Sensex index.

Top Sensex losers: Shares of Bajaj Finance, Bajaj Finserv, ICICI Bank and Infosys ended as the top laggards in the Sensex kitty of stocks.

Sectoral picture

Nifty Financial Services, with a loss of 1.18 percent, emerged as the top sectoral loser. Nifty Bank, Private Bank and IT indices declined up to a percent.

Among the gainers, Nifty Oil & Gas, FMCG, Auto and Pharma rose over a percent each.

Experts' views on markets

Vinod Nair, Head of Research at Geojit Financial Services pointed out that globally, investors are digesting the FOMC minutes with stock markets trading lower revealing that the Fed officials' are determined to tame inflation by maintaining its aggressive stance.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said valuations of Indian markets are still stretched when compared to other global indices and investors are steadily booking profit to trim their positions due to the challenging and uncertain global environment.

"Investors are guarded in their equity exposure, as rising interest rate regime and geo-political tensions are key hurdles that could trigger a major selloff," said Chouhan.

Technical views by experts

The Nifty saw a gap-up opening but encountered selling pressure near the key hourly moving averages.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas said the index breached the level of 18,000, however, received support near 17,900. From there, the index had a swift bounce towards the end of the session.

"The weekly chart shows that the index is getting support near the 20 WMA. Also, the index has support from multiple technical parameters, which are near 17,800. Thus, the overall structure shows continued consolidation near 17,800-18,300," said the analyst.

Om Mehra, Equity Research Analyst at Choice Broking pointed out that the Nifty is witnessing "sell-on-rise" as the index needs to sustain 18,250 for the next upside rally.

Mehra said indicators such as RSI and MACD are slightly tilted to the negative side. The volume profile indicates the index may find support around 17,800.

On the open interest (OI) front, the highest Call OI was observed at 18,200, followed by 18,300 strike price. The highest PUT OI was seen at 17,800, followed by 18,700 strike price, said Mehra.

Key market data

Article
Active stocks
Article
Volume shockers

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

Article
Market cap vs equity
First Published: 05 Jan 2023, 03:30 PM IST