Taking Stock | Nifty ends below 14K, Sensex plunges over 900 pts as bears continue to dominate

Today's Market

Market witnessed selling pressure for the fourth consecutive day on January 27. Sensex fell over 1,000 points and Nifty slipped below 13,950 level on an intraday basis.

At close, the Sensex was down 937.66 points or 1.94% at 47,409.93, and the Nifty was down 271.40 points or 1.91% at 13,967.50.

“Markets witnessed a 2 percent cut today even as the IMF put out an impressive 11.5 percent growth forcast for India in 2021, the highest for any major economy globally. Autos, Metals & Financials bore the brunt of selling as we saw unwinding ahead of the Union Budget. Absence of FII buying this week too added to the nervousness in Wednesday’s afternoon trade,” S Ranganathan, Head of Research at LKP Securities.

Except FMCG, all other sectoral indices ended in the red with Nifty metal, pharma, auto and bank shedding 2-3 percent each. Infra, energy and PSU bank indices also fell over 2 percent each.

Broader markets outperformed the main indices with BSE Midcap and Smallcap indices falling 1.3 percent and 0.5 percent respectively.

Tata Motors, Axis Bank, Tata Steel, GAIL and Titan Company were among top losers on Nifty, while gainers included Tech Mahindra, SBI Life Insurance, Wipro, ITC and Power Grid Corp.

Stocks & sectors

On the BSE, realty, bank, auto, metal and oil & gas indices shed 2-3 percent, while power and healthcare indices fell 1 percent each.

A volume spike of more than 100 percent was seen in SAIL, NALCO and ICICI Lombard General Insurance Company.

Long buildup was seen in Tech Mahindra, Cipla and Marico, while short buildup was seen in Infosys, HDFC and IndusInd Bank.

Over 100 stocks including Bajaj Auto, TVS Motor and GHCL hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a Bearish belt hold candle indicating bears have complete control over the market. Index may continue to remain highly volatile ahead of Monthly expiry and Union Budget 2021.

It continues its formation of lower top-lower bottom formation since the last three sessions.

“Now, till it remains below 14,200 zones, a bounce could be sold and weakness may be pull it towards 13,800 levels, while on the upside key hurdle exists at 14,200 and 14,350 levels,” said Chandan Taparia of Motilal Oswal Financial Services.

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