Informist, Monday, Feb 26, 2024
By Padmini Dhruvaraj
MUMBAI – The benchmark equity indices started the week on a negative note and extended losses for the second straight session on profit-booking. The indices were dragged by losses in shares of information technology and financial services companies. However, gains in Larsen & Toubro, Power Grid Corp of India, and the Adani twins – Adani Enterprises and Adani Ports and Special Economic Zone – capped the losses.
The Nifty 50 index opened lower on the back of losses in banking stocks and fell more as the day progressed to its intraday low of 22075.15 points. However, a recovery in select oil and energy stocks pushed the index up from its day’s low. The index traded in a thin range of 22110-22170 for most of the session.
Eventually, the 50-stock index closed 90.65 points, or 0.4%, lower at 22122.05 points, with 36 of its constituents in the red. The BSE Sensex ended 352.67 points, or 0.5%, down at 72790.13 points.
“Benchmark equity indices were subdued today tracking mixed cues from global markets ahead of the expiry of February month derivative contracts,” Avdhut Bagkar technical and derivatives analyst at StoxBox said in a note. “It did make efforts to display a reversal, however, the selling pressure around 22175-22200 appeared to be heavy and determined.”
Among Nifty 50 constituents, Asian Paints was the worst performer, closing 3.9% lower. The Hong Kong-based brokerage CLSA reportedly downgraded the stock to ‘sell’ from ‘underperform’. CLSA also cut the target price for the share by nearly 800 rupees to 2,425 rupees from 3,215 rupees. Hindalco Industries, which closed 2.6% lower at 505.05 rupees, was another major laggard. However, an analyst at a domestic brokerage said he expects the stock to rebound to 570 rupees.
Shares of banking and financial services companies fell, with Axis Bank, Kotak Mahindra Bank, IndusInd Bank, and Bajaj Finance closing 0.8-1.1% lower.
On the upside, shares of Larsen & Toubro closed 2.4% higher after the company’s railway strategic business group secured a ‘significant’ order to construct phase 2A of the subway route for Jakarta Mass Rapid Transit through Sojitz Corp. The company classifies orders worth 10-25 bln rupees as ‘significant’.
Sectoral indices on the National Stock Exchange ended in sync with the Nifty 50. The Nifty IT, Nifty Metal, and Nifty Consumer Durables indices were the worst-hit sectoral indices and fell on profit-taking, analysts said. The Nifty IT index extended losses for the second session and ended 1.2% lower on the back of losses in shares of Persistent Systems, Mphasis, Tech Mahindra, and LTIMindtree.
Jigar Patel, a senior equity manager at Anand Rathi Share and Stock Brokers, expects the IT index to correct more in the coming weeks as some stocks have gained sharply in the last few days. The index has risen over 16% in the last three months and over 21% in six months.
On the other hand, the Nifty Energy, Nifty Oil & Gas, and Nifty Infrastructure indices rose. The Nifty Energy index rose 0.5% today, led by 8.7% gains in Adani Energy Solutions. Patel expects the energy index to rise further to 40000–40200 points in the coming sessions. Further, the Nifty Infrastructure and Nifty Auto indices hit their respective lifetime highs.
Meanwhile, the Nifty Bank index fell for the fourth straight session. The index closed 235.25 points, or 0.5%, lower at 46576.50 points. “The short term trading chart set-up for Bank Nifty is still positive,” Tejas Shah, technical research analyst at JM Financial & BlinkX, said in a note. “The important key take away for Bank Nifty is that it is bouncing back from the lower levels and is also holding above the 50-day exponential moving average which is currently placed at 46233 levels. On the downside, the support zone lies at 46400-46500,” he added.
The small- and mid-cap indices on the NSE closed 0.2-0.6% lower. Rain Industries closed 7.8% lower, becoming the worst performer in the broader market after the company posted a consolidated net loss of 11.19 bln rupees in the December quarter, against a net profit of 895.21 mln rupees a year ago. Shares of Alkem Laboratories closed 6.6% lower, being the major laggard in the Nifty 200 index, amid media reports that the Income-Tax Department had unearthed alleged tax evasion by the company.
Going forward, analysts expect profit-taking to continue. The Nifty 50 index is expected to find support at 22000 points and face resistance at 22300 points. “Technically, on intraday charts the index is consistently facing selling pressure at higher levels and on daily charts, it also formed bearish candle, which is largely negative,” Shrikant Chouhan, head of equity research at Kotak Securities, said.
“However, the short-term texture of the market is still into the positive side. We are of the view that, as long as the index is trading below 22200 the weak sentiment is likely to continue. Below which, the market could slip till 22050- 22000,” Chouhan added.
* Of the Nifty 50 stocks, 36 rose and 14 fell
* Of the Sensex stocks, 25 rose and 5 fell
* On the BSE, 1,710 stocks rose, 2,268 fell, and 130 were unchanged
* Nifty IT: down 1.17%; Nifty Metal: down 0.94%; Nifty Energy: up 0.50%
BSE NSE
Sensex: 72790.13, down 352.67 pts, or 0.48% Nifty 50: 22122.05, down 90.65 pts, or 0.41%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 73427.59 (Jan 16, 2024) : Lifetime High: 22297.50 (Feb 23, 2024)
Record Close High: 73128.77 (Jan 16, 2024) : Record Close High: 22217.45 (Feb 22, 2024)
2024 1st day close: 72271.94 (Jan 1) : 2024 1st day close: 21741.90 (Jan 1)
2024 Closing High: 73128.77 (Jan 16) : 2024 Closing High: 22217.45 (Feb 22)
2024 Closing Low: 70370.55 (Jan 23) : 2024 Closing Low: 21238.80 (Jan 23)
2024 High (intraday): 73427.59 (Jan 16) : 2024 High (intraday): 22297.50 (Feb 23)
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 Saji George Titus
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