Taking Stock | Market falls for 4th straight day; Sensex below 38K, Nifty breaks 11,200

Indian market fell for the fourth consecutive day on September 22 following muted global cues to hit a 7-week low. The S&P BSE Sensex plunged by 300 points while the Nifty50 closed below 11200 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 300 points to 37,734 while the Nifty50 fell 96 points to close at 11,153.

Experts are of the view that weakness in global markets, rising cases of COVID which could hamper the economic recovery across the world kept investors on the edge.

"Indian indices witnessed another day of volatility, with indices losing ground in the latter half of the trading day, as the broader markets also underperformed. Global cues were also mixed with Asian markets in the red, while European markets have opened in the green,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Doubts about the timing of a global economic recovery emerged, following talks of further restrictions to contain a resurgence in virus infections around the world, especially in Europe. This uncertainty hit the Indian markets also, which have been driven by liquidity and the expectation that the economy and earnings would be back on track soon,” he said.

Nair further added that the markets seem to be consolidating and taking stock of the situation. Investors are advised to stay cautious.

Sectorally, the action was seen in IT space. Selling pressure was visible in Oil & Gas, Capital Goods, Realty, Consumer Discretionary etc. among others.

On the broader markets front – the S&P BSE Mid-cap index fell by 1.7 percent and the S&P BSE Small-cap index was down by 1.6 percent.

The Nifty Bank fails to hold on to 100-DMA placed at 21,358. The index closed 1.07 percent lower at 21139.

Top Nifty gainers include names like Sun Pharma, Tech Mahindra, TCS and HCL Technologies.

Top Nifty losers include names like Adani Ports, Bharti Infratel, and ZEE Entertainment.

Stocks & Sectors:

Sectorally, the selling pressure was seen in the Capital Goods index which was down 2.4 percent, followed by the S&P BSE Oil & Gas index that fell 2.3 percent, and the S&P BSE Energy index was down 1.9 percent.

Some action was seen in IT stocks which rose 0.9 percent.

Volume spike of more than 100% was seen in Ambuja Cements, SBI Life, Tata Chemicals, and Adani Enterprises.

Long Buildup was seen in stocks like HCL Tech, Adani Enterprises, and Page Industries.

Short Buildup was seen in stocks like Bata India, JSPL, and Bharti Infratel.

Nearly 100 stocks on the BSE hit a fresh 52-week high that includes names like TCS, Hexaware, and Sasken Technologies etc.

Read more: Gainers & Losers: 10 stocks that moved the most on September 22

Technical View:

The Nifty formed a bearish candle, breaks below 50-Days EMA

The index has been making lower top - lower bottom on a daily scale and closed below its 50 DEMA which is giving the upper hand to the bears in the market.

It formed a Bearish Belt Hold kind of candle as it made almost open high and remained under pressure at every small bounce back move.

“Now till it sustains below 11333-11300 zones, a bounce could be sold for further weakness towards 11000 and 10880 zones while on the upside medium term hurdle is shifting lower to 11450 zones,” Chandan Taparia of Motilal Oswal Financial Services Limited said.