Taking Stock: Sensex, Nifty slip-on benefit reservation again, PSU banks take a hit



With the PSU bank index down 4.7 percent, all sectoral indices ended in the red, while the car, bank, infra, metal, and pharmaceutical indices shed 1-2 percent.


For the fourth consecutive day on February 19, the market ended lower, with the Nifty slipping below the critical 15,000 and the Sensex below the 51,000-mark. At the close, at 50,889.76, the Sensex was down 434.93 points, or 0.85%, and the Nifty was down 137.20 points, or 0.91%, at 14,981.80.

The index closed the week on a negative note at 14,982 with a loss of more than one percent and on the weekly chart formed a bearish engulfing type of candle pattern that represents a reversal of a trend. As the index managed to break its strong support for the 15k mark, which now acts as an immediate resistance, we may see some relief above the 15k mark, otherwise, we may see more downside levels of 14900-14750. 


With the PSU bank index down 4.7 percent, all sectoral indices ended in the red, while the car, bank, infra, metal, and pharmaceutical indices shed 1-2 percent.


Broader markets reflected the indexes, with 0.7-1.6 percent of the BSE midcap and smallcap indices dropping.


"Consolidation continued as increased volatility and weak global cues influenced investors to stand on the sidelines, leading the market to close below 15k level. Sentiments across the globe were also wounded by increasing bond yield, higher commodity price, and the disappointing US data," said Vinod Nair, Head of Research at Geojit Financial Services.

Stocks & industries


The automobile, banking, and metal sectors shed 2 percent each on the BSE. The indices of realty, oil & gas, and healthcare drop 1 percent each.

Punjab National Bank, Grasim Industries, and JSW Steel saw a volume spike of more than 100 percent.

Long buildup was seen in IndusInd Bank, IDFC First Bank, and Cholamandalam Financial Holdings, while short buildup was seen in Grasim Industries, Cummins, and JSW Steel.


More than 200 stocks have reached a fresh 52-week high on the BSE, including Bank of Maharashtra, Jubilant FoodWorks, and IDFC First Bank.


Technical Perception


On the daily scale, The Nifty shaped a bearish candle, and on the weekly scale, a bearish engulfing candle.

The development of the lower highs and lower lows of the last three trading sessions continues.

"Till the Nifty remains below 15,150 zones, weakness could continue towards the next key support of 14,800 and 14,700 zones, while on the upside, hurdles are seen at 15,250 and 15,400 zones," said Chandan Taparia of Motilal Oswal Financial Services.


Source Money Control

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