Informist, Monday, Feb 5, 2024
By Padmini Dhruvaraj
MUMBAI – Indian equity indices erased all intraday gains and ended sharply lower today due to profit-booking in shares of Reliance Industries and some financial services stocks, analysts said. Meanwhile, gains in shares of Tata Motors and oil-related stocks limited the fall in indices.
The benchmark Nifty 50 opened flat, tracking mixed sentiment in the global equity market and swung between gains and losses during the first half of the trade. However, bullish sentiment in some automobile and public sector stocks lifted the Nifty 50 up. Later, due to profit-taking in select index heavyweight stocks, the Nifty 50 fell nearly 240 points from its intraday high of 21964.30 points.
Eventually, the 50-stock index closed lower by 82.10 points, or 0.4%, at 21771.70 points and the 30-stock Sensex ended lower by 354.21 points, or 0.5%, at 71731.42. As many as 33 stocks of the Nifty 50 ended lower today. Meanwhile, the India VIX, often known as the fear gauge index, rose 6.3% to 15.62 points.
“Today, the benchmark indices witnessed profit booking at higher levels,” Shrikant Chouhan, head of equity research at Kotak Securities, said in a note. “In addition, on the daily chart, the index has formed a bearish candle, which supports further weakness from the current levels.”
On a similar line, Nirav Harish Chheda, assistant vice president of derivatives and technical research at Nirmal Bang said: “The Nifty 50 has formed a doji kind of candle on the monthly charts, which indicates an immediate reversal. The index might face some selling pressure this month and might touch the 21000 level, so investors should look to book profit now.”
Shares of Reliance Industries fell 1.3% today, dragging the Nifty 50 lower by 0.13%. Shares of UPL fell 11.2% after reporting poor earnings in Oct-Dec and were the worst-hit among the Nifty 50 constituents. Brokerage firm Jefferies cut the target price for the UPL stock to 635 rupees from 675 rupees earlier.
Among the gainers, shares of Tata Motors rose the most in the benchmark index. The stock rose over 8% today and hit an all-time high of 950 rupees after the company’s consolidated net profit in the December quarter more than doubled on year, beating analysts’ expectations. Sun Pharmaceutical Industries and Coal India also led the gains on the Nifty 50.
Meanwhile, nine sectoral indices – Nifty Pharma, Nifty Healthcare, Nifty Oil & Gas, Nifty Auto, Nifty Energy, Nifty Metal, Nifty Infrastructure, Nifty IT, and Nifty FMCG – hit their lifetime highs today. Among these, Nifty Pharma was the top performer with 1.8% gains, while the Nifty Consumer Durables was the worst hit with 1.2% losses.
In the broader market, the Nifty midcap and smallcap indices ended mixed. Further, UCO Bank emerged as the top gainer on the Nifty 500 index as the stock closed 14% higher, while shares of Life Insurance Corporation of India hit a fresh lifetime high.
Paytm’s parent company One97 Communications hit the lower circuit for the third consecutive session as it fell 10% to 438.50 rupees. Its shares have declined 323 rupees, or 42%, in the last three sessions since the Reserve Bank of India directed Paytm Payments Bank not to take further deposits after Feb 29. However, the company’s Founder Vijay Shekhar Sharma assured investors through a post on X, formerly Twitter, on Friday that the mobile application will continue to work beyond Feb 29.
Going forward, analysts expect investors to continue to take profit. “The last hour of the day observed an intense sell-off, which could dent the upside bias if the index fails to recoup losses quickly,” Avdhut Bagkar, technical and derivatives analyst at StoxBox said.
The Nifty 50 is expected to find immediate support at 21600 points and face resistance at 22000 points. “Technically, Nifty’s biggest support is placed at the 21407 mark, and the landscape will be positive as long as Nifty 50 trades above the 21137 mark with aggressive targets at 22127 mark,” Prashanth Tapse, senior vice president of research at Mehta Equities said in a note.
* Of the Nifty 50 stocks, 17 rose and 33 fell
* Of the Sensex stocks, 8 rose and 22 fell
* On the BSE, 1,817 stocks rose, 2,136 fell, and 144 were unchanged
* Nifty Consumer Durables: down 1.19%; Nifty FMCG: down 0.76%; Nifty Pharma: up 1.79%
BSE NSE
Sensex: 71731.42, down 354.21 pts, or 0.49% Nifty 50: 21771.70, down 82.10 pts, or 0.38%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 72720.96 (Jan 12, 2024) : Lifetime High: 22126.80 (Feb 2, 2024)
Record Close High: 72568.45 (Jan 12, 2024) : Record Close High: 22097.45 (Jan 15, 2024)
2024 1st day close: 72271.94 (Jan 1) : 2024 1st day close: 21741.90 (Jan 1)
2024 Closing High: 72568.45 (Jan 12) : 2024 Closing High: 21894.55 (Jan 12)
2024 Closing Low: 70370.55 (Jan 23) : 2024 Closing Low: 21238.80 (Jan 23)
2024 High (intraday): 72720.96 (Jan 12) : 2024 High (intraday): 21928.25 (Jan 12)
2024 Low (intraday): 70001.60 (Jan 24) : 2024 Low (intraday): 21137.20 (Jan 24)
2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 72410.38 (Dec 28) : 2023 Closing High: 21778.70 (Dec 28)
2023 Closing Low: 59288.35 (Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)
2023 High (intraday): 72484.34 (Dec 28) : 2023 High (intraday): 21801.45 (Dec 28)
2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
End
Edited by Tanima Banerjee
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