Sensex sheds 311 pts on Fed rate hike scare; banks, IT shares wither
CLOSING BELL ON JUNE 15, 2023: The weekly Nifty and Bank Nifty options expiry pressure saw the NSE benchmark drop 0.4 per cent, while the latter tumble 1.2 per cent.
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Stock Market Highlights: The key benchmark indices succumbed to selling pressure in the latter half of the trading day, amid worries over possible further rate hikes by the US, and weekly options expiry related pressure on the Nifty and Bank Nifty on Thursday.
While leaving the interest rates unchanged in the June policy on Wednesday, the US Federal Reserve surprised the global markets, with a forecast of two more quarter-point hikes due later this year.
The S&P BSE Sensex started the day on a tentative note, but soon regrouped and touched a high of 63,311 – up near about 100 points. However, the gains were short-lived, the BSE benchmark slipped back into the negative zone on the back of heavy selling pressure, particularly in private bank stocks.
IT stocks too slipped after JP Morgan reiterated its negative stance on Indian information technology (IT) services and downgraded the sector to underweight. Among stocks, it has placed Infosys, TCS, MphasiS its 'negative catalyst watch'.
The Sensex finally ended the day with a loss of 311 points at 62,918. The NSE Nifty 50 dipped to a low of 18,669, and eventually settled 68 points lower at 18,688. The Bank Nifty cracked 1.2 per cent.
The broader indices, however, managed to end the day on a positive note. The BSE Midcap index was up 0.3 per cent, and the Smallcap 0.1 per cent.
The broader indices, however, managed to end the day on a positive note. The BSE Midcap index was up 0.3 per cent, and the Smallcap 0.1 per cent.
4:01 PM
Tech View :: 'Bank Nifty breaks 20-EMA; next support at 43,150'
The banking sector has been disappointing in the past few sessions as it did not participate in the broader market rally. With today's price action, the short-term charts appear distorted.
On the daily chart, prices have fallen below the 20-day exponential moving average (20-ema), which had been a strong support level recently. This break below the 20-ema does not bode well for the bullish sentiment. Considering today's bearish momentum, we may observe more weakness in the near future with the next support level around the 50-day simple moving average (50-sma) at around 43,150, followed by the swing low of 42,600 recorded in May.
On the upside, the previous support level of 43,700 - 43,800 will now act as immediate resistance. Traders should take note that this recent weakness is merely a price correction, and the overall trend remains positive. Any further dips should be seen as buying opportunities.
Views by: Rajesh Bhosale, Technical Analyst at Angel One
On the daily chart, prices have fallen below the 20-day exponential moving average (20-ema), which had been a strong support level recently. This break below the 20-ema does not bode well for the bullish sentiment. Considering today's bearish momentum, we may observe more weakness in the near future with the next support level around the 50-day simple moving average (50-sma) at around 43,150, followed by the swing low of 42,600 recorded in May.
On the upside, the previous support level of 43,700 - 43,800 will now act as immediate resistance. Traders should take note that this recent weakness is merely a price correction, and the overall trend remains positive. Any further dips should be seen as buying opportunities.
Views by: Rajesh Bhosale, Technical Analyst at Angel One
3:56 PM
Tech View :: 'Near-term outlook changes to sideways from positive'
On the daily charts, the Nifty has formed an Engulfing Bear candle stick pattern which has bearish implications. The daily momentum indicator has a negative crossover which is a sell signal. Thus, both price and momentum indicators are suggesting weakness in the near term, and thus we change our short term outlook on the index to sideways from positive.
The range of consolidation id likely to be 18,800 – 18,500. The 20-day moving average, which has been holding out during this rally, is placed at 18,532 and so only a decisive break below that shall reverse the trend. In terms of levels, 18,780 – 18,800 shall act as an immediate hurdle zone, while 18,530 – 18,500 is the crucial support zone to watch out.
Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The range of consolidation id likely to be 18,800 – 18,500. The 20-day moving average, which has been holding out during this rally, is placed at 18,532 and so only a decisive break below that shall reverse the trend. In terms of levels, 18,780 – 18,800 shall act as an immediate hurdle zone, while 18,530 – 18,500 is the crucial support zone to watch out.
Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
3:53 PM
Comment :: 'Despite weakness in benchmarks, there is buying interest in broader markets'
The domestic market is responding to the Fed's hawkish commentary, which suggests the possibility of 2 more rate hikes in the future this year, although they have currently opted for a halt.
Due to concerns about inflation persisting above their target range, Fed officials have increased their rate projections by 47.5 bps for the end of 2023 to 5.6%.
Despite weakness in the benchmark index, there is buying interest observed with the Nifty Mid-cap index trading at an all-time high.
Views by: Vinod Nair, Head of Research at Geojit Financial Services.
Due to concerns about inflation persisting above their target range, Fed officials have increased their rate projections by 47.5 bps for the end of 2023 to 5.6%.
Despite weakness in the benchmark index, there is buying interest observed with the Nifty Mid-cap index trading at an all-time high.
Views by: Vinod Nair, Head of Research at Geojit Financial Services.
3:50 PM
Currency check :: Rupee ends 8 paise lower at 82.18/$
>> Wednesday's close was 82.10/$
3:48 PM
Buzzing stock :: IndiGo climbs over 2.5% on achieving highest-ever market share in May
>> InterGlobe Aviation commanded over 61% market share in May amid Go First grounding
>> Air India, Vistara other market share winners, SpiceJet losses
>> Air India, Vistara other market share winners, SpiceJet losses
3:46 PM
Buzzing stock :: Lokesh Machines hits 20% upper circuit on order win from GoI
3:44 PM
Buzzing stock :: IDFC First Bank ends near 6-year high in a weak market
3:42 PM
Buzzing stock :: Axis Bank ends with a slight downtick post block deal
3:40 PM
Broader market indices extend their winning ways
3:39 PM
Sectoral trends :: Banks, financial services stocks weigh on the bourses
3:37 PM
Sensex Heatmap :: 12 of 30 index stocks scalp gains; Nestle, M&M, ITC top winners
3:35 PM
CLOSING BELL :: Nifty ends below 18,700
3:33 PM
CLOSING BELL :: Sensex slides over 300 pts as US Fed eyes 2 more rate hikes
3:22 PM
Global Check:: US, UK stock futures down up to 0.7%
Source: Investing.com
3:08 PM
Stock Alert:: Hero Moto plunges over 5% from day's high
Shares of Hero MotoCorp witnessed a sudden dip to Rs 2,810. The stock was down over 5 per cent from the day's high of Rs 2,961 on the BSE.
CNBC TV-18 reports that Ministry of Corporate Affairs initiates investigation against the company.
CNBC TV-18 reports that Ministry of Corporate Affairs initiates investigation against the company.
Topics : Stock Market MARKET WRAP MARKET LIVE Markets US Federal Reserve SJVN Dilip Buildcon Buzzing stocks Market news BSE NSE
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First Published: Jun 15 2023 | 7:30 AM IST
