Profit taking intensifies on D-Street as auto, real estate and pharmaceutical stocks come under heavy pressure

Benchmarks continued their downward rally and were trading near the day’s low as strong sells were seen in real estate and metals stocks on October 20. At the close, the Sensex lost 456.09 points or 0.74% to 61,259.96. The larger Nifty50 lost 152.20 points or 0.83% to 18,266.60. About 877 shares rose, 2351 shares fell and 115 shares are unchanged.

Hindalco, Titan Company, HUL, BPCL and Bajaj Finserv were among the biggest losers for Nifty. The winners included Bharti Airtel, SBI, Tata Motors, IndusInd Bank and Axis Bank.

Gaurav Udani, CEO and Founder of ThincRedBlu Securities, said: “Since the last two trading sessions, Nifty has seen lower highs and lows, indicating that Nifty’s correction may continue over the next few trading sessions. stock Exchange. Nifty closed at 18,280, down 130 points. Nifty could test 18,250 and 18,150 in the next few sessions. Long traders are advised to maintain a strict stoploss and record profits on every rise, ”he added.

Mohit Nigam, Head – PMS, Hem Securities said: “The sell off was larger in the larger market space where the SmallCap and MidCap index fell more than 2.5%. Apart from telecommunications, all the other indices are in the negative zone. Among the individual actions. , Jubilant Food Works plunged nearly 9% after the company’s same-store sales growth stood at 26.3% for the July-September quarter, which is lower than the estimate of the Street. , amid large volumes, falling more than 30 percent in the past two trading days due to profit booking amid buzz that the government is appointing a regulator for the rail industry.

“The benchmarks saw massive sell-offs for a second straight session. We believe that today’s profit taking is healthy for the market and any significant drop is a good opportunity to accumulate quality stocks. The immediate support for Nifty 50 is 18,100 ”, Nigam added.

Palak Kothari, Research Associate, Choice Broking, said, “Technically, the index confirmed the bearish engulfing candle pattern which indicates meter weakness for the coming session. On a daily chart, the stock traded with support. of the 9-day moving average, suggesting that a hold above the same may continue the uptrend. Additionally, an RSI momentum indicator slipped from an overbought area and the Stochastic suggested a negative cross. Currently, the index has immediate support at the 18200 level, while upside resistance is intact at 18,600 levels. “

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “Market sentiment was weak throughout the trading session due to increased profit taking by investors on the equities. which had rebounded strongly in recent sessions. After a moderate opening, the benchmark Nifty broke through the intraday support level of 18400 and then maintained a negative position throughout the day, over the past two days the Nifty has corrected nearly 400 points and Currently trading near the important retracement support level.

“We are of the opinion that the index has completed a corrective stage and that 18,150 and 18,200 could be sacrosanct support levels for traders. Above that there is a strong possibility of a Rapid pullback rally to 18,350-18,425 levels. On the other hand, the layoff of 18,150 could further increase intraday weakness to 18,080. “

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Posted on: Wednesday October 20, 2021 3:49 PM IST


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