Sensex, Nifty off over 2% in two days from all-time high; mid-, smallcaps outperform equity benchmarks

Headline indices BSE Sensex and Nifty 50 settled in the negative territory once again on Thursday, as investors booked profit. Also, expiry of the weekly futures and options (F&O) contracts added to the share market volatility. Earlier this week, BSE Sensex made a fresh record high of 52,517. The 30-share index has fallen 2.3 per cent from lifetime high level in just two days. BSE Sensex ended 379 points or 0.73 per cent at 51,324.69, while the broader Nifty 50 index settled 90 points or 0.60 per cent at 15,119. During intraday, Sensex hit a day’s low of 51,187, while Nifty gave up the crucial 15,100. Sectorally, Nifty PSU Bank index soared 5.6 per cent while Nifty Financial Services index lost 1.48 per cent. The broader market outgunned the equity benchmarks with BSE MidCap and SmallCap indices closing up 0.7 per cent, each. During intraday, both the indices climbed to new 52-week highs.

S Ranganathan, Head of Research at LKP Securities

While Indices ended in the red on Thursday, the under ownership in PSU stocks was evident today also as several of them across sectors posted smart gains. The PSU bank index which rose 6% yesterday recorded huge gains for the second day in a row led by privatisation hopes. In the broader market, non-life insurers and paper stocks saw keen interest among investors.

Vinod Nair, Head of Research at Geojit Financial Services

Market remained in the mood for consolidation for the third day, impacted by negative cues from Asian markets. Globally, markets are showing weakness due to spike in US bond yield while improving corporate earnings and continued inflow of foreign funds is providing support to the domestic market. Bearish rally in the market was led by private banks and auto stocks while PSU Banks continued its outperformance on hopes of privatisation.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

On the day of the weekly expiration of Index options, the benchmark index witnessed profit booking. We are of the view that the market likely to continue the narrow range activity and PSU Banks and selective midcap and small-cap stocks will outperform in the near future. Technical, on daily charts index, maintain higher bottom series formation and the texture of the market suggests uptrend likely to continue if the Nifty/ Sensex succeed to trade above 15050/51000. Above the same, we can expect one more leg of the up move, up to 15250, 15330/ 51900, 52300. On the flip side, dismissal of 15060 would result in further weakness and in that case Nifty/Sensex could retest previous lows of 14970/50840.

Rohit Singre, Senior Technical Analyst at LKP Securities

One more negative session witnessed on the street as the index closed at 15117 with loss of 0.60 per cent and formed a bearish candle for a third consecutive session on the daily chart. Index consecutively breaking every support and now final strong support is placed at 15k mark any close below said levels can push the index to more dipper level of 14750 zone, strong resistance is coming near 15250 fresh upside-only possible if index managed to sustain above 15250 zone