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    Market Movers: RIL slides further; Bandhan bleeds; 70 stocks flash ‘buy’

    Synopsis

    Here is a lowdown on what happened in Monday’s market.

    Market Movers: What changed for D-Street while you were sleepingGetty Images
    Losses in oil-to-telecom major Reliance Industries (RIL) and top financial stocks weighed on the indices.
    Mumbai: Benchmark equity indices extended their losing streak into the fourth straight session on Monday, as fatigue set in and investors turned cautious amid valuation concerns.

    Losses in oil-to-telecom major Reliance Industries (RIL) and top financial stocks weighed on the indices.

    Analysts said the weakness is here to stay.

    “The long-term uptrend line (connected from the bottom of March 2020 low at 7,511 and rising lows) has been broken on the downside, and Nifty closed below it in last two sessions. This is a negative indication and could confirm near-term top reversal pattern. One may expect further weakness in the coming sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    Here is a lowdown on what happened in Monday’s market:
    Market breadth positive
    Despite the sharp losses in the benchmark indices, the broader market had a positive story to tell. Advancing stocks beat the declining ones in the 1.1:1 ratio on BSE. The broader indices had a mixed day: BSE Midcap index declined 0.31 per cent while BSE Smallcap rose 1.02 per cent.

    RIL continues to slide
    RIL continued its downward journey, shedding another 2.83 per cent to Rs 2008. The stock contributed the most to Sensex’s decline. It is now down 8.6 per cent from its record high of Rs 2,198 hit on July 27, but up 131 per cent from its March lows.

    Bandhan Bank tumbles
    Private lender Bandhan Bank saw its shares declin 10.60 per cent to Rs 308 after promoter group firm Bandhan Financial Holdings sold 337.4 million shares at Rs 313.1 each in a block trade on Monday.

    Laurus Labs scales new high
    Laurus Labs scaled a new high, rising 7.76 per cent to Rs 1,006. Brokerages believe this API manufacturer is now a play on the formulation business. They have revised their earnings estimates sharply for its stock, suggesting 20-30 per cent potential upside. The stock has gained 180 per cent on a year-to-date basis.

    Stocks that hit 52-week highs
    Some 143 stocks scaled 52-week highs on BSE. They included Ajanta Pharma, Aurobindo Pharma, Laurus Labs, Dr Reddy’s Laboratories, Deepak Fertilizers, HCL Technologies, IndiaMART InterMESH, Ballarpur Industries and L&T InfoTech, among others.

    Stocks that hit lower limits
    As many as 251 stocks hit their lower limits set by the bourses. These included Future Retail, Future Lifestyle Fashions, Omaxe, Shemaroo Entertainment, 5 Paisa Capital, Birla Tyres, among others.

    Stocks that gave buy signals
    Some 70 stocks flashed ‘buy’ signals on BSE, as their prices crossed above the signal line on the MACD indicator. They included Tata Motors, Future Consumer, Neogen Chemicals, Dalmia Bharat, BASF India, Torrent Power and KRBL, among others.

    Where is Nifty headed?
    The market witnessed selling pressure for the fourth day in a row, and Nifty shed over 175 points from the day’s highest level. The intraday fall was mainly due to heavy selling in Bank Nifty, especially private banks, and financial and energy stocks.

    Shrikant Chouhan of Kotak Securities says though Nifty's short-term trend remains weak, the possibility of a pullback rally cannot be ruled out, if the index trades above 11,000. "In the short run, the 11,000 level should be considered as a trend deciding level. Trading below the same could see Nifty correct all the way to the 10,850-10,820 zone. On the flip side, a rise above 11,000 level may trigger a relief rally up to 11,170 level,” he said

    Vinod Nair of Geojit Financial Services said although the momentum has slowed down, stock-specific action is still happening, dependent mainly on the earnings and commentary. "As long as the market holds the current range, these downturns could be shortlived and can be utilised to accumulate quality stocks."



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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