The market ended lower for the second day in a row on the back of weak Asian market cues. At the close, the Sensex was down 273.51 points, or 0.52 percent, at 52,578.76, and the Nifty slipped 78 points, or 0.49 percent, to 15,746.50.
Asian stocks hit their lowest this year on a third straight session of selling in Chinese internet giants, and real bond yields hit record lows ahead of a Federal Reserve policy meeting, Reuters reported.
"For the umpteenth time, the Nifty has yet again faced strong headwind on approaches near 15,900. The benchmark index has given up all of its early session gains to turn red, weighed by profit-booking across sectors, most notably among pharma stocks,” said Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS.
A strong sell-off in Chinese and Hong Kong markets also added to woes. Metals and PSU banks are the only sectors trading noticeably in the green, he said.
"Currently, the Nifty remains in a consolidation mode between 15,500 and15400 on the downside and 15,900-16,000 on the upside. Until we get a decisive move out of this band, one should avoid building directional trades in the index and instead prefer a stock-specific long/short approach,” Chinchalkar said.
With the Federal Reserve meeting scheduled for July 28 and the monthly F&O expiry two days later, it would be advisable to trade on light, volatility was expected to pick up over the next two sessions, he added.
Among sectors, except metal and PSU bank all other sectors ended lower, with the Nifty pharma index down over 4 percent.
BSE midcap and smallcap indices also ended in the red.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 52,578.76 | -273.51 | -0.52% |
| Nifty 50 | 15,746.45 | -78.00 | -0.49% |
| Nifty Bank | 34,797.45 | -152.25 | -0.44% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Hindalco | 417.35 | 17.30 | +4.32% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Dr Reddys Labs | 4,843.35 | -567.90 | -10.49% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5465.90 | 78.50 | +1.46% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 14018.70 | -633.85 | -4.33% |
Dr Reddy’s Labs, Cipla, Axis Bank, Adani Ports and Divis Labs were the top Nifty losers. Hindalco Industries, SBI Life Insurance, Tata Steel, Bajaj Finserv and SBI were among the top gainers.
Stocks & sectors
On the BSE, healthcare and power indices lost 1.5-3 percent, while metal index added 1.6 percent.
Among individual stocks, a volume spike of more than 600 percent was seen in Cadila Healthcare, Sun TV and Dr Reddy's Laboratories.
A long buildup was seen in Godrej Consumer Products, Hindalco Industries and Trent, while a short buildup was seen in Sun TV, Dr Reddy's Laboratories and Cipla.
More than 450 stocks, including Tata Steel, SBI Life Insurance Company, Jubilant FoodWorks, Ambuja Cements and APL Apollo Tubes, hit a fresh 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the daily scale. "The Nifty has to hold above 15,750 zones to witness an up move towards 15,900 and 15,962 levels, while on the downside, support exists at 15,700 and 15,600 levels," said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
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