Profit booking continued for the second straight session on May 17 with the Nifty closing below the 18,200 mark, led by mixed global markets amid worries over the debt ceiling crisis in the US.
At close, the Sensex was down 371.83 points or 0.60 percent at 61,560.64, and the Nifty was down 104.70 points or 0.57 percent at 18,181.80.
After a negative start, the market witnessed extended profit booking amid selling across the sectors, dragging the Nifty close to 18,100. However, the index saw some recovery in the final hour of the trade.
Stocks and Sectors
Kotak Mahindra Bank, Apollo Hospitals, SBI Life Insurance, TCS and HCL Technologies were among the biggest losers on the Nifty. Gainers were Hero MotoCorp, IndusInd Bank, ITC, UPL and BPCL.
On the sectoral front, realty, metal and information technology indices shed 1 percent each, while bank, oil & gas and power indices fell 0.5 percent each.
The BSE midcap index ended marginally lower and smallcap index ended higher.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 61,431.74 | -128.90 | -0.21% | |
| Nifty 50 | 18,129.95 | -51.80 | -0.28% |
| Nifty Bank | 43,752.30 | 53.60 | +0.12% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Finance | 6,789.40 | 84.35 | +1.26% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Divis Labs | 3,153.50 | -114.50 | -3.50% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Bank | 43752.30 | 53.60 | +0.12% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 3959.15 | -76.65 | -1.90% |
A short build-up was seen in LIC Housing Finance, Oberoi Realty and Jindal Steel, while long build-up was seen in Exide Industries, Jubilant FoodWorks and Ramco Cements.
Among individual stocks, a volume spike of more than 400 percent was seen in BHEL, Escorts and Jubilant FoodWorks.
More than 100 stocks touched their 52-week high on the BSE, including, TVS Motor Company, Indian Oil Corporation, Sonata Software, Heritage Foods, Exide Industries, CCL Products, Housing & Urban Development Corporation, L&T Finance Holdings, KPI Green Energy and Aurionpro Solutions.
Outlook for May 18
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty has witnessed consecutive negative days. Amid the selling pressure, the Nifty has managed to hold on to the crucial support level of 18100 and the intraday pullback has come exactly from around 18100 which indicates that until the Nifty manages to stay above this level the uptrend is intact.
The upward sloping channel has been breached on the downside and the daily momentum indicator has a negative crossover which is a sign of weakness, and this can lead to consolidation over the next few trading sessions.
On the flipside, there are multiple support parameters in the form of the 20-day moving average (18053) and the 38.2% Fibonacci retracement level (18113) of the rise from 17553 – 18459 are placed which shall provide cushion and restrict a deep correction. Stock specific action can take place over the next few trading sessions.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets lingered in negative territory as cautious investors continued to book profit after the recent spike. The subdued economic readings coming in from the US and China once again raises concern of a slowing economy and hence recession fears, which is making investors jittery about the future course.
Technically, the Nifty has breached the crucial support level of 18,250 and also formed a bearish candle on daily charts which is largely negative. For traders 18,250 and 18,300 would act as an immediate resistance area while 18,100-18,050 could be important support levels for the bulls.
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