Sensex see-saws 325 pts, ends 19 pts down; banks gain; Tata Motors drops 9%

Stock market updates: TThe frontline equity indices halted their two-day winning run as profit-booking in all but financial sector dragged them in the negative territory on Tuesday. Moreover, a fall in the monthly GST collection below Rs 1-trillion, for the first time in eight months, weighed on investor sentiment. 

Add to it, the 10-year government bond yield rose 1.6 per cent on Tuesday amid concerns that high crude oil prices may keep inflationary pressures mounted in the economy. Brent Crude Futures were hovering above $77 per barrel-mark after OPEC and its allies decided to call-off their meeting indefinitely.  

Effectively, the 30-share BSE barometer dropped 268 points from the record peak of 53,129, touched earlier today, to settle at 52,861 levels, down 19 points or 0.04 per cent. 

Only 11 of the 30 constituents on the index managed to end in the green led by UltraTech Cement (up 3 per cent), HDFC Bank, Bajaj twins, Kotak Bank, IndusInd Bank, and Tata Steel.

On the NSE, the broader Nifty50 declined 16 points, or 0.10 per cent, to end at 15,818 levels.

Tata Motors, down 8.5 per cent, ended as the top laggard on the index after its UK subsidiary Jaguar Land Rover (JLR) said it expects an operating cash outflow of about £1 billion, with negative earnings before interest tax (EBIT) margin in the second quarter ended September 2021 (Q2FY21), due to the supply constraints. READ ABOUT IT HERE

In the broader markets, the BSE MidCap index settled 0.12 per cent higher while the BSE SmallCap index closed 0.26 per cent lower.

In terms of sectoral participation, the Nifty Bank was the top performing index, up 0.9 per cent, trailed by the Nifty Financial Services index, up 0.8 per cent. On the flipside, the Nifty Auto was the biggest loser, down 1.8 per cent. 

Global markets

European stocks slipped on Tuesday after three sessions of gains as gloomy trading in Asia and an unexpected drop in German industrial orders offset a jump in commodity stocks. The pan-European STOXX 600 index fell 0.1 per cent.

In Asia, Japan's Nikkei added 0.16 per cent and South Korea's Kospi gained 0.36 per cent. Australia's ASX200, however, fell 0.7 per cent.

On Wall Street, futures of all three main US stock indices were down up to 0.06 per cent.

(With inputs from Reuters) 

5:15 PM

MARKET VIEW :: Bullish sentiment intact but traders should stay cautious

Key benchmark indices witnessed volatile trading sessions near 15,900 / 53,100 resistance level. Today, post muted opening, the index quickly surpassed  15,850/52,900 resistance level but once again it failed to sustain above 15,900/53,100 and due to constant profit booking at higher level. It erased all intraday gains in the second half of the day and after a highly volatile trading session finally closed at 15,818/52,861.

On the domestic front, the Bank Nifty and Financial index outperformed and rallied over 1.25 per cent. However, profit booking was seen in Auto and IT stocks. We are of the view that bulls are still in total control but intraday chart indicates that traders may prefer caution near 15,925/53,200 resistance level.

Technically, the short-term structure of the market is still bullish. However, on a daily chart,  the Nifty/Sensex has formed a Gravestone Doji candlestick kind of pattern, which indicates short-term weakness.

In the near future, 15870/ 52900 should be the key level to watch out. Below the same, correction wave is likely to continue up to 15,775-15,720/ 52,850-52,500 levels. On the flip side, if the market succeeds to trade above 15,870 /52,900, we can expect continuation of the uptrend wave till 15,925-15,965/ 53,200-53,400 levels

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

4:59 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term uptrend of Nifty seems to have encountered profit booking around 15,900 levels again. Further weakness on Wednesday could confirm negative reversal and that could open another round of downward correction in the market from highs. A move above doji at 15915 could only negate this bearish pattern. Immediate support is placed at 15730.

4:44 PM

MARKET VIEW :: Selling pressure emerging at 15,850 levels

ndian benchmark equity indices ended minorly in the negative on July 6 after once again facing resistance at 15915 levels. The Nifty opened flat, rose during the earlier part of the day to make an intra day high at 1350 Hrs. It fell later to end almost at the opening and intra day low levels. At close, the Nifty was down 16.10 points or 0.10% at 15818.30.

 

Volumes on the NSE were higher than recent averages. Among sectors, Power & Banks gained the most while Auto, IT and energy were the main losers. BSE midcap index ended marginally higher, while smallcap index fell 0.26 percent.

 

Nifty corrected mildly after a two day rise. This happened with higher volumes. Nifty also made a double top at 15914 levels. On daily charts it has made a bearish inverted hammer like pattern. Hence at 15850+ levels, a lot of selling pressure seems to be emerging from investors. 15738 is the support for the Nifty in the near term while 15915 continues to be resistance.  

Views by: Deepak Jasani, Head of Retail Research at HDFC Securities

4:28 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Indian market was led by financial stocks, business updates of major Banks and NBFCs for the quarter of June which showed improvement in business activity, minimising concerns over second wave impact. But profit-booking breached the overall market by the end of the day. Globally, oil prices surged after OPEC called off talks to boost production despite rising global demand

4:18 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

The Nifty index witnessed profit booking in the second half and closed the day at 15,817. The index formed a "Doji candle pattern" on the daily chart, showing indecisiveness.

The index again faced hurdle at 15,900 zone and witnessed sharp profit-booking at the level.

Only a close above 15,900 can show a stronger positive momentum. Support is still placed at 15,775- 15,700 zone and we may see some swift bounce from the mentioned levels

 

4:10 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Indices gave up gains in afternoon trade as investors encashed on the outperformance of Small & Midcap stocks since last few months as both these indices are trading at highs in absolute terms. Cement stocks quite clearly bucked the trend today and stocks in both largecap & midcap segments posted handsome gains

3:58 PM

BSE Snapshot

3:49 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:48 PM

Stocks that dragged the Sensex lower today

3:46 PM

BSE SmallCap index ends 0.3% down

3:44 PM

BSE MidCap index ends 0.2% up; AU SFB, Adani Group stocks rally

3:41 PM

Sectoral trends on the NSE

3:40 PM

Sensex Heatmap at Close

3:33 PM

CLOSING BELL

The 30-share BSE barometer dropped 268 points from the record peak of 53,129, touched earlier today, to settle at 52,861 levels, down 19 points or 0.04 per cent. 

On the NSE, the broader Nifty50 declined 16 points, or 0.10 per cent, to end at 15,818 levels.

3:21 PM

Gold tops $1,800/oz mark as dollar slips; focus on Fed minutes

Gold rose above the $1,800/ounce psychological level on Tuesday to hit a three-week high, as a pullback in the dollar lifted bullion demand, while investors awaited minutes from the U.S. Federal Reserve's June meeting for clarity on monetary policy.

 

Spot gold climbed 0.7% to $1,804.50 per ounce by 0652 GMT, after touching its highest level since June 17. READ MORE