Sensex sinks 536 pts, Nifty nears 21,500 amid global sell-off; IT slides

Closing Bell on January 3, 2024: On the upside, Bajaj Auto, Adani Enterprises, Adani Ports, Cipla, ITC, and IndusInd Bank were the top gainers, rising up to 4.5 per cent

Stock market highlights: Benchmark indices reeled under pressure for a second straight day on Wednesday as risk-off sentiment, spread across global markets, hit domestic shores as well.

The S&P BSE Sensex remained volatile in a narrow range of 558 points before closing 536 points, or 0.75 per cent, lower at 71,357. The Nifty50, on the other hand, shut shop at 21,517, down 148 points or 0.69 per cent.

IT stocks were the worst performing pocket today as investors dumped related stocks ahead of the December quarter earnings announcement due next week.

All 10 IT stocks from the Nifty IT index settled in the negative zone (down 2.5 per cent) led by Mphasis (down 3.8 per cent), LTIMindtree, Infosys, Wipro, Tech M, TCS, HCL Tech, and Coforge (2 per cent).

That apart, the Nifty Metal, and Financial Services index saw selling of 1,8 per cent, and 0.4 per cent, respectively. 

On the upside, Bajaj Auto, Adani Enterprises, Adani Ports, Cipla, ITC, and IndusInd Bank were the top gainers, rising up to 4.5 per cent.

That said, the broader BSE MidCap and SmallCap indices eked out gains of 0.2-0.3 per cent. 

3:52 PM

Tech View :: 'Nifty has strong support near 21,500'

Nifty50
On the daily charts, intraday pullbacks are being sold into and the 20-hour moving average (21,642) is acting as a stiff resistance.

On the way down, the Nifty has now reached the 38.2% Fibonacci retracement level (21,507) which is likely to act as a make-or-break level for the Nifty.

We expect Nifty to hold on to this support and prepare a base for the next leg of upmove. Overall, we believe that the fall is a retracement of the previous rise from 20,976 – 21,834 and not a trend reversal.

Thus this dip should be used as a buying opportunity.

 

Nifty Bank

Bank Nifty closed marginally in the red and has now reached the 20 day moving average (47,669) which it has respected today.

Intraday, it dipped below that; however, it has closed above that indicating buying interest at support levels.

We expect the Bank Nifty to consolidate and build a base for the next leg of upmove. On the upside immediate resistance is placed at 47,900 – 48,000.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

 

3:48 PM

Comment :: 'Concerns over valuation keeping investors on sidelined'

The lack of fresh triggers and concerns over valuation influenced investors to stay sidelined.

Weak global indicators, like contraction in China & Euro zone manufacturing data, added concerns about global economic recovery in 2024.

Importantly, the market was waiting for the FED minutes later today for rate insights.

As a rebound in the US 10-yr yield and an uptick in the dollar index indicate whether FED may not turn as dovish as expected.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

3:46 PM

Comment :: 'Traders should refrain from aggressive longs'

It is a healthy correction so far despite the underperformance of two key sectors viz. banking & IT and participants should focus largely on buying opportunities on dips till Nifty holds 21,200 level.

Defensive viz. pharma and FMCG are attracting noticeable interest on the expected lines while others are contributing on a rotational basis.

Traders should align their positions accordingly but refrain from aggressive longs. 

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

 

 

3:45 PM

Currency check :: Rupee ends 3 paise higher at 83.28/$

3:43 PM

SmallCap Heatmap :: Index ends 0.3% higher

3:41 PM

MidCap Heatmap :: Index holds gains, ends 0.2% up

3:40 PM

Nifty Heatmap :: 33 of 50 index stocks settle lower; Hindalco, Tata Steel top losers

3:38 PM

CLOSING BELL :: Nifty moves closer to 21,500

3:37 PM

CLOSING BELL :: Sensex ends over 500 pts lower amid global selling

3:24 PM

Bajaj Auto rallies 6%, hits new high as board to mull buyback on January 8

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3:13 PM

Finance Ministry approves additional Rs 1,500 cr for FAME-II scheme

The target to support the number of vehicles was raised from 1.56 million to 1.74 million. The target for electric two-wheelers (e2Ws) was raised by 50 per cent to 1.55 million, while for e3Ws it was reduced by 68 per cent to 155,536. It was reduced for e4W by 13 per cent to 30,461. READ MORE

3:01 PM

Global check:: US, UK stock futures in red; down up to 0.8%

Source: Investing.com

2:48 PM

Banking, IT promising in 2024: What sectors should investors bet on?

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2:36 PM

Stock of this auto ancillary company has zoomed 40% in 4 trading sessions

Till 01:39 PM; a combined 9.7 million equity shares representing 2.9 per cent of total equity of NRB Bearings had changed hands on the NSE and BSE. READ MORE

2:23 PM

Duration funds likely to offer 12-14% return: What should your 2024 strategy be?

With high starting yield and expectation of fall in bond yields, long term government bonds offer investor a rewarding opportunity, said experts. READ MORE