Nifty Extends Losses for Second Day, IT and Auto Stocks Lead the Fall

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

After opening lower in the absence of any strong cues, Nifty witnessed profit booking throughout the session. Index finally ended the session with a loss of 100 point at 26,042. However, on a weekly basis, Nifty managed to break its three-week losing streak, with a modest gain of 0.3%. NSE cash market turnover declined by 6% as compared to Wednesday.

Titan, Hindalco, and Nestle stood out as the top gainers from Nifty Pack, while Asian Paints, Shriram Finance, and Bajaj Finance came under selling pressure and ended among the key laggards.

Excluding Nifty Metal, Consumer Durables, and FMCG, all sectoral indices closed in negative territory. IT, Auto, and Financial Services led the sectoral decline.

Broader markets too succumbed to profit booking, mirroring the benchmark trend. The Nifty Midcap 100 slipped 0.23%, while the Nifty Smallcap 100 dipped 0.08%. Market breadth remained weak for the second consecutive session, as reflected in a BSE advance-decline ratio of 0.71.

Indian rupee weakened by 6 paise to close at 89.85 against the U.S. dollar. The fall was attributed to persistent foreign outflows and increased dollar demand from metal importers.

Despite two straight sessions of profit booking, Nifty's short-term setup remains positive, holding above its 20 day EMA and key gap support placed near 26,000 level. Immediate resistance is seen around 26,145, followed by 26,250. On the downside, a close below 26,000 may trigger further weakness towards 25,880 and 25,770.

Source : Equity Bulls

Keywords

Nifty NSE Sensex BSE HDFCSecurities IT Auto