Sensex falls for 2nd day, slips 299 pts; ITC sheds 4%; auto stocks gain

CLOSING BELL ON JULY 24, 2023: The NSE Nifty ended with a loss of 73 points; Reliance down 2% was the other major laggard on Monday.

SI Reporter New Delhi

Stock Market Highlights: The frontline indices ended in red for the second straight day on Monday owing to losses in index heavyweights ITC and Reliance Industries. Select IT and metal shares also dwindled under selling pressure, while auto stocks stood firm.

The S&P BSE Sensex swung between zones for a major part of the trading day, wherein the index touched a high of 66,809. However, aggressive selling pressure towards the fag end of the day saw the BSE benchmark slide to a low of 66,326, before settling with a loss of 299 points at 66,385.

The NSE Nifty 50 touched a high of 19,783, and then dipped to a low of 17,658. The NSE benchmark eventually ended 73 points lower at 19,672.

Index heavyweight ITC tumbled over per cent, after the company’s board gave its in-principle approval for demerge of the hotel business. The board also approved incorporation of a wholly-owned subsidiary - ITC Hotels Limited. READ MORE

Meanwhile, shares of Mukesh Ambani-led Reliance Industries shed 2 per cent on the back of lower-than-expected Q1 earnings. READ MORE

Among other Sensex 30 shares, Kotak Bank also declined nearly 4 per cent. Tech Mahindra, JSW Steel, Tata Steel and Hindustan Unilever were down 1 – 3 per cent. On the other hand, IndusInd Bank, Mahindra & Mahindra, PowerGrid Corporation, Bajaj Finserv and UltraTech Cement were up 1-2 per cent each.

In the broader market, the BSE MidCap index advanced 0.3 per cent, while the SmallCap index added 0.1 per cent. Overall, the market breadth was marginally negative, with more than 1,900 shares declining versus 1,760-odd advancing stocks on the BSE.

4:00 PM

Comment :: 'Expect Nifty to respect the 19300-19500 zone'

It is a healthy correction as it would help in easing the overbought condition and we expect Nifty to respect the 19300-19500 zone during this phase. Traders should focus on managing their existing trades and accumulating quality stocks on dips. We feel the performance of the banking pack would play a critical role ahead.

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

3:54 PM

Tech View :: 'The index is experiencing a tug-of-war between the bulls and the bears'

The index is experiencing a tug-of-war between the bulls and the bears, resulting in a sideways movement.The option data indicates that call writers and put writers are actively participating at the 46000 strike price. This suggests that market participants are uncertain about the direction of the index, leading to a potential sideways momentum.If the index sustains below the 46,200 mark, it may open the way for further downside movement towards the support zone of 45,700-45,000.

Views by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

3:51 PM

Tech View :: 'Nifty may further weaken to 19,550'

The bears currently have the upper hand in the market, and the index is facing strong resistance at the 19,800 level, where aggressive call writing is observed. This resistance zone has become a significant hurdle for the bulls.If the index sustains below the 19,700 level, it may lead to further downside movement towards the support zone of 19,600-19,550, where the next support level is visible.Given the current market conditions and volatility, traders should be cautious and utilize both the resistance and support levels to make trading decisions.

Views by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

3:49 PM

COMMENT :: What all happened in the markets today?

Volatility has re-emerged as initial Q1 results are below the expectations. Sector wise setbacks were experienced in IT and FMCG, unveiling weak demand and high input costs. Banks are mixed while Pharma stocks are withholding the volatility in anticipation of a better demand from developed economies, reduction in US pricing issues and expansion in operating margins. Investors are also watchful of the upcoming FOMC meeting, addressing rate hike and quantitative tightening measures, which could have an implication on FIIs inflows.

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

3:48 PM