Taking Stock | Market ends lower for fourth straight session amid volatility; oil and gas, metal worst hit

Indian markets ended lower for the fourth consecutive session on February 21 amid volatility led by the weak global cues amid uncertainties over the Ukraine crisis.

After a negative start, the market remained under selling pressure for a couple of hours but erased losses in the afternoon session and inched to the day’s high level. However, profit booking at the higher level again dragged the market into negative terrain towards the closing.

At close, the Sensex was down 149.38 points or 0.26 percent at 57,683.59, and the Nifty was down 69.60 points or 0.40 percent at 17,206.70.

“Domestic indices started weak taking cues from negative global peers but in between recouped most of its losses on reports of likely meeting between US President Joe Biden and Russian President Vladimir Putin over the Ukraine issue,” said Vinod Nair, Head of Research at Geojit Financial Services.

“However, the market could not stretch the direction and turned negative as uncertainty in the global markets continued. Investors stood sidelined impacting volumes.”

“The market is expected to be volatile due to the upcoming Fed meeting and state election results,” he added.

Coal India, Hindalco, UPL, ONGC and Adani Ports were the top Nifty losers. Gainers included Wipro, Infosys, Shree Cements, Power Grid Corp and ICICI Bank.

Nifty Energy, Metal, Pharma and PSU Bank indices fell 1-2 percent, while Nifty Bank index ended with marginal gains.

Broader indices underperform the main indices with BSE midcap index shedding 0.8 percent and smallcap index declining 2.2 percent.

Stocks and sectors

On the BSE, except bank all other indices ended in the red with capital goods, FMCG, metal, oil and gas, healthcare, power, and realty down 1-2 percent.

A short build-up was seen in BHEL, Hindustan Copper and Aditya Birla Capital, while a long build-up was seen in Vodafone Idea, Coforge and Federal Bank.

Among individual stocks, a volume spike of more than 400 percent was seen in Indiabulls Housing, Sun Pharma and Granules India.

More than 100 stocks, including Glance Finance and Linde India, hit a 52-week high on the BSE.

Outlook for February 22

Palak Kothari, Research Associate at Choice Broking:

On an hourly chart, the index has been trading with lower highs and lower lows formation which points out a weakness for an upcoming session. Furthermore, the index has traded below the middle band of Bollinger which suggests downside movement in the counter.

On a daily chart, the index has been trading below 21*50-DMA with a negative crossover, which suggests weakness for the next session.

Moreover, the daily momentum indicator Stochastic and MACD were also trading with a negative crossover which adds weakness in prices.

At present, the index has support at 17,000 levels, breaching below the same can show further downside till 16,900-16,800 levels while resistance comes at 17,500 levels. On the other hand, Bank Nifty has support at 36,800 levels while resistance at 38,500 levels.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

On daily charts, it has formed a Long leg Doji formation and the pattern suggests indecision of bulls and bears.

We are of the view that 17,250-17,300 would be the immediate resistance level on the Nifty and above the same, the index could move up to 17,375.

On the flip side, trading below 17,100 may increase further weakness till 17,050-17,000.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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