Sensex bleeds 796 pts, Nifty holds 19,900 as HDFC Bank slides 4%, RIL 2%

Closing Bell on Wednesday, September 20: HDFC Bank shares were the biggest dragger on the benchmarks as they dropped nearly 4 per cent, while JSW Steel, and Reliance Industries fell over 2 per cent

SI Reporter Mumbai

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Stock market highlights: Global sell-off engulfed domestic markets on Wednesday, pressured by selling in HDFC Bank and Reliance Industries, as risk-off sentiment gripped markets. The nervousness ahead of the US Federal Reserve further dampened the sentiment.

The S&P BSE Sensex slumped 796 points, or 1.18 per cent, to end at 66,801 levels, while the Nifty50 breached below the 20,000-mark to settle at 19,901, down 232 points or 1.15 per cent.

Sensex tanks 796 pts, Nifty breaks 20,000: Why are markets falling today?

The indices hit intraday lows of 66,728 and 19,879, respectively.

HDFC Bank shares were the biggest dragger on the benchmarks as they dropped nearly 4 per cent, while JSW Steel, Reliance Industries, Ultratech Cement, Maruti Suzuki, Tata Steel, Bharti Airtel, L&T, Wipro, and Tech M slipped between 1 per cent and 2.5 per cent.

Sensex, Nifty in correction mode; Watch out for these key levels

The BSE MidCap and SmallCap indices also ended lower by up to 0.5 per cent.

Amid the broad-based selling, the Nifty Metal, Bank, and Private Bank indices eased up to 1.5 per cent.

4:04 PM

Tech View :: 'Nifty has completed first wave of correction'

Nifty50
On the daily charts, we can observe that the Nifty is in the process of retracing the rise it has witnessed from 19223 – 20222. On the downside it can drift towards 19,840 where the 38.2% Fibonacci retracement level is placed.

The Nifty has witnessed a faster retracement and also breached the low of 19,914 (wave IV low) which suggests that the rise from 19,223 to 20,222 has completed a wave.

In terms of levels, 19,840 – 19,800 is the crucial support zone while 20,050 – 20,100 shall act as an immediate hurdle zone

Bank Nifty.

On the downside, the Bank Nifty can drift towards 45,070 – 44,930 where support in the form of the 50% fibonacci retracement level and the 20 day moving average is placed respectively. Considering the sharp fall a pullback is possible however we expect it to be sold into and that should be the ideal trading strategy from short term perspective.

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

3:54 PM

Comment :: 'Global reasons weighing on sentiment'

The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices. Bank Nifty underperformed today due to rising cost of funds and reduction in deposits leading to moderation in net yield.

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

3:52 PM