After opening flat, the domestic stock market slid further to decline by nearly 0.5% in the afternoon trade on Monday. Benchmark Nifty50 dropped 0.46% and the Sensex shed over 250 points as global factors continue to drive action on the Dalal Street.
At 12.15 pm, the Nifty50 slipped below 17,100 to trade at 17,074 and the Sensex was trading a around 57,100.
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As bank stocks remain under pressure on Monday, the 12-share banking index, Nifty Bank, was down more than 100 points to around 35,300. Nifty midcap and smallcap indices too declined by over 0.6% and 0.7% respectively as as India’s VIX hovered around 23.5-mark.
Sectorally, except for metal, media and oil& gas, all other sectors were in the red. Consumer durable, pharma, financial services stocks dragged the market the most in the afternoon trade.
Coal India, Hindalco, ICICI Bank, Bajaj Auto, JSW Steel, IndusInd Bank, ITC, Bharti Airtel and Tata Steel gained in the weak market. Dr Reddy’s, SBI Life, HDFC Ltd, UPL, HDFC Life, Nestle India, HCL Tech, M&M and HDFC Bank traded lower.
Anand James – Chief Market Strategist at Geojit Financial Services said we were looking for a close above 17260 on Friday to see if the bulls will force us to have a rethink on the anticipated down move towards 16700. Our learning from the tug of war of Friday and how oscillators have ended up is that the Nifty may have to bide more time to get directional, he said.
“The 200-day SMA has also pushed up to 17000, standing in the way of a free fall. Expect the day to be welcomed by a 17150-270 band with an upward bias, but with limited upsides. Directional moves could set in once the 17000-17350 band is breached, at which point, 16700 or 17760 would emerge as the objectives,” he had said in his opening commentary.
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