Bear run enters sixth day as Sensex fall 142 pts, Nifty near 17,450

CLOSING BELL: Sectorally, the Nifty Metal index plunged 3 per cent, dragged by Adani Enterprises, which tumbled nearly 5 per cent

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CLOSING BELL

Stock market highlights: Domestic equities' losing run entered sixth straight session on Friday as growth concerns, amid fears of elevated interest rates, hurt sentiment. The S&P BSE Sensex fell 142 points, or 0.24 per cent, to close at 59,464, while the Nifty50 declined 45 points, or 0.26 per cent, to end at 17,466.

Adani Enterprises (down 5 per cent), Hindalco, JSW Steel, M&M, Tata Steel, SBI Life, L&T, Tata Motors, BPCL, HDFC Life, HDFC, and HDFC Bank were the top laggards. On the flipside, ONGC, Divis Labs, Asian Paints, Coal India, Adani Ports, Bajaj Auto, Power Grid, and NTPC eked out gains. 

In the broader markets, the BSE MidCap index dipped 0.17 per cent, and the BSE SmallCap index eased 0.15  per cent. Sectorally, the Nifty Metal index plunged 3 per cent, followed by the Nifty PSU Bank index (down 0.8 per cent). 

'Risks to the market rally are rising'

Risks to the rally in the global equity markets – especially arising from geopolitical shocks – are rising, wrote Christopher Wood, global head of equity strategy at Jefferies in his recent note to investors, GREED & fear. This, he wrote, can see oil prices climb higher going ahead.

Zee Entertainment: Stock entering bear grip?

There is a “Death Cross” formation on the daily chart, whose significance reveals a bearish sentiment. The stock may enter a long-term bearishness if it fails to quickly rebound and hold ground over the 200-day moving average (DMA), presently positioned at Rs 241.

7:58 PM

NEWS ALERT :: US slaps fresh sanctions against Russia

7:28 PM

SpiceJet soars 12% as net profit jumps five-fold to Rs 107 crore in Q3

Spice Jet

7:24 PM

COMMENT:: Traders should consider initiating long straddles

Though the Nifty Index today went below, the 17,500 level continues to see high OI at the 17,500 PE side for the monthly expiry indicating that the put sellers are not yet convinced that the market is likely to fall much from this level. The 17,000 PE continues to add large OI on the PE side as well, which further supports this hypothesis. On the weekly expiry front, traders continue to hold their short straddles at the 17,500 level.

 

Traders should look to initiate long straddles on the monthly expiry in this environment with weekly offsets, as the VIX is far too low to create short straddles right now from a premium perspective. Same is noticed on the Bank Nifty OI data, as the 40,000 PE of the monthly expiry is seen having the highest OI on the put side even though Bank Nifty went considerably below this level. Traders therefore, are not expecting a big fall here in Bank Nifty.

 

Views by: Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform

7:22 PM

Risks to the market rally are rising; oil stocks a good bet: Chris Wood

Risks to the rally in the global equity markets - especially arising from geopolitical shocks -  are rising, wrote Christopher Wood, global head of equity strategy at Jefferies in his recent note to investors, GREED & fear. This, he wrote, can see oil prices climb higher going ahead. 

Photo: Bloomberg

7:19 PM

Nifty: The NSE benchmark may target 17,150–17,200 on the downside

"The Nifty has fallen back into the falling channel, heightening the chances of further downsides. The 50DMA and 14DMA are in a bearish crossover. Also, the current value is sitting well below the critical near-term moving averages, with the momentum oscillator RSI (14) slipping below the reading of 50. The current set-up is likely to keep the Nifty under pressure, with a potential downside towards 17,150–17,200 over the short term. On the higher end, crucial resistance is placed at 17800."

 

- Rupak De, Senior Technical Analyst at LKP Securities

7:15 PM

COMMENT:: Continued FIIs selling weighs on the sentiment

"The domestic market is broadly demonstrating a lack of confidence, registering its sixth consecutive day of losses despite global markets turning green. Continued selling in the domestic market  by FIIs is acting as an overhang in sustaining the early gains. Crude oil prices rallied as the prospect of lower Russian exports outweighed rising US inventory."

 

- Vinod Nair, Head of Research at Geojit Financial Services