Indian equity benchmarks the Sensex and the Nifty snapped their two-day winning run amid weak global cues on January 19 as investors remained concerned over a recession in the US.
Global markets were under gloom after weak US consumer data raised recession worries.
“US retail sales fell by the most in a year in December, pulled down by declines in purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023,” reported Reuters.
Sensex fell 187 points, or 0.31 percent, to 60,858.43 while the Nifty ended at 18,107.85, down 58 points, or 0.32 percent.
Mid and smallcaps also declined; the BSE Midcap index fell 0.06 percent while the Smallcap index fell 0.24 percent.
Crude oil prices traded lower on concerns over weak demand. Brent Crude traded a percent lower near the $85 a barrel mark. The rupee slipped 11 paise lower to end at 81.36 per dollar.
Top Sensex gainers: Shares of Tata Steel, Power Grid, Tech Mahindra, Axis Bank and HDFC Bank ended as the top gainers in the Sensex index.
Top Sensex losers: Shares of Asian Paints, IndusInd Bank, Tata Motors, Kotak Mahindra Bank and Titan ended as the top losers in the Sensex index.
Most sectoral indices ended in the red, barring Nifty Oil & Gas (up 0.46 percent) and PSU Bank (up 0.33 percent) indices. Among the losers, Nifty Media and FMCG indices fell up to a percent.
Nifty Consumer Durables, Metal, Private Bank and Auto indices slipped about half a percent each.
Experts' views on markets
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities pointed out that the uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session.
"Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities," said Chouhan.
Vinod Nair, Head of Research at Geojit Financial Services pointed out that the domestic indices snapped their previous gains amid negative sentiments from their global counterparts.
"Weak US consumer data and hawkish comments from the Fed's policymakers on Wednesday hammered investor risk appetite. Lingering fears of recession dragged global bourses down, leaving the market volatile," said Nair.
Technical views by experts
Chouhan said after a promising pullback rally the Nifty has formed an inside body candle formation which is indicating non-directional activity. For traders, 18,050 would be the immediate support zone and below this, the index could slip to 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200.
Ameya Ranadive, CMT, CFTe, Equity Research Analyst at Choice Broking underscored volume profile indicates the Nifty may find support around 17,850-17,950 zone.
"On the open interest (OI) front, on the Call side, the highest OI was observed at 18,200, followed by 18,300 strike prices while on the Put side, the highest OI was at 18,000 strike price. As markets continue to trade in a wide range with high volatility, we advise traders to keep booking profits on their trading positions," said Ranadive.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.