The Indian equity market was back in the red after two days of gain in a highly volatile session on May 18, with mixed global cues shadowing the support extended by pharma and FMCG names.
At close, the Sensex was down 109.94 points, or 0.20 percent, at 54,208.53, and the Nifty was down 19 points, or 0.12 percent, at 16,240.30.
After a sharp run in the previous session, the Indian indices started the day on a positive note. The market remained positive in the first half but profit- booking in realty, PSU bank and IT names in the second half dragged indices lower.
"With the support from pharma and FMCG stocks, the domestic market had a steady run until the weak opening of the European market. The UK’s soaring retail inflation number along with the Fed Chair’s reassurance on bringing down the inflation, disturbed the sentiment, risking sharper rate hikes," said Vinod Nair, Head of Research at Geojit Financial Services.
With prospects of a sizeable interest rate hike by the global central banks, investors are advised to allocate higher weightage to sectors that are least affected by such policies like defensives, he added.
Tata Consumer Products, Shree Cements, UltraTech Cement, Cipla and HUL were among the top Nifty gainers. Power Grid Corporation, BPCL, Apollo Hospitals, Tata Motors and Tech Mahindra were the biggest losers.
Among sectors, Nifty FMCG and pharma indices rose a percent each. Nifty PSU bank, energy and IT indices fell 0.5-1.5 percent.
Stocks and sectors
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 73,088.33 | 599.34 | +0.83% |
| Nifty 50 | 22,147.00 | 151.15 | +0.69% |
| Nifty Bank | 47,574.15 | 504.70 | +1.07% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Finance | 7,119.50 | 226.30 | +3.28% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Auto | 8,804.50 | -216.80 | -2.40% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Bank | 47574.20 | 504.75 | +1.07% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 18404.60 | -121.20 | -0.65% |
On the BSE, capital goods, realty and oil & gas indices shed 0.5-1.8 percent. However, FMCG index gained 1.2 percent.
The BSE midcap index ended flat, while the smallcap index was up 0.3 percent.
A long build-up was seen in Multi Commodity Exchange of India, Petronet LNG and Granules India, while a short build-up was seen in Metropolis Healthcare, Dr Lal PathLabs and Delta Corp.
HBL Power Systems, Mangalore Refinery & Petrochemicals and Kohinoor Foods were among the stocks that touched their 52-week high on the BSE.
Among individual stocks, a volume spike of more than 200 percent was seen in Metropolis Healthcare, Dr Lal PathLabs and Bosch.
Outlook for May 19
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened on a positive note and tried to continue with the positive momentum. On the higher side, it stumbled near 16,400 where it attracted profit booking.
The internal structure of the recent rise shows that the negative close on May 18 is a minor pause and the short term pullback is still intact.
The index is expected to witness fresh buying support near 16,200. Thus, this minor degree dip can be taken as a fresh buying opportunity from a short-term trading perspective.
On the higher side, the short-term target is pegged at 16,500. The level of 16,000 will act as a support for the short term.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
The market did not capitalise on the firm start and turned range-bound to end marginally lower.
The rampant FII selling has been weighing on investors' minds, and worries about subdued growth due to rising interest rates is hurting the sentiment.
On daily charts, the Nifty has formed a small bearish hammer candlestick, which indicates range-bound activity in the near future.
For day traders, 16,200-16,150 will act as key support zones. Above it, the index can move to 16,400-16,450. On the flip side, uptrend can be vulnerable below 16,150, and the index can retest 16,050-16,000.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty found crucial resistance at 16,400 and slipped before closing with a marginal loss. On the daily chart, the index remained well below the short-term moving average. The daily RSI is in the bullish crossover.
The trend is likely to remain sideward over the near term. The resistance on the higher end is placed at 16,400. On the lower end, support is visible at 16,000.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
