The Indian stock market opened in favor of the correction after a big crash was recorded yesterday. However, it again closed in the red zone. As a result of China's mega stimulus package last week to bring the economy on the path of growth, funds in the Shanghai stock market bought heavily on attractive valuations, foreign fund diversion and signs of an upset in the elections in Jammu Kashmir and Haryana put a brake on the rally in the Indian stock markets. -Finance, auto stocks were called for.
The Sensex closed down 33 points at 84266 points, while the Nifty future index closed down 21 points at 25969 points. The Bank Nifty future index closed down 54 points at 53381 points. Aggregate assets i.e. total market capitalization of companies listed in BSE decreased.
The record rally in Sensex, Nifty came to a halt as the market breadth remained negative with several mid-cap stocks selling despite attractiveness in select small stocks. Overbought positions of funds were also seen easing in banking stocks. Metal-mining stocks of funds remained attractive in anticipation of high demand in the metal-mining sector as China provided mega stimulus package. Sensex, Nifty in Indian stock markets have been overbought continuously for the past several days. As the correction-reduction became inevitable, it started.
Top gainers in today's trade include TCS, Larsen, Torrent Pharma, Mahindra & Mahindra, Lupine, Voltas, Sun Pharma, Voltas, HCL Technology, Infosys, Adani Ports, Torrent Pharma, Tata Communication, DLF, Jindal Steel, Oberoi Realty, Tata Steel, JSW Shares like Steel, Sun TV, Wipro, Tata Chemicals have increased. Today's top losers like Indigo, Havells, Kolpal, Grasim, ACC, Kotak Mahindra Bank, Glenmark Pharma, Cipla have declined.
Out of the total 4054 scrips traded in BSE, the number of decliners was 1667 and the number of gainers was 2296, 90 stocks saw no change in price. While 01 stocks had only seller's bearish lower circuit against only buyer's bullish upper circuit in 11 stocks.
Nifty Future Technical Levels… NIFTY FUTURE CLOSE :- ( 25976 ) :- On the next move Nifty Future is likely to touch 26008 points to 26088 points, 26180 points, 26088 points, 26180 points in terms of first and crucial strong stoploss of 25808 points at 25838 points. …!!
Bank Nifty Future Technical Level… Bank Nifty Future Close :- ( 53390 ) :- The next swing is likely to see the Bank Nifty Future touch the crucial level of 53008 points first and 52808 points from 53474 points to 53570 points, 53606 points very important level around 52808 points cautiously. Creating a position…!!
Specific technical level regarding future stock Balakrishna Industries ( 3090 ) :- The share price of this leading company of Balakrishna Group is currently trading around Rs.3030. Buyable with a stoploss of Rs.3003, this stock is likely to register a price of Rs.3108 to Rs.3120 in a short period of time…!! Bullish focus on Rs.3133…!! ACC Limited ( 2531 ):- Positive breakout around Rs.2488 as per technical chart…!! This buyable stock with support of Rs.2470 is likely to register price of Rs.2553 to Rs.2560…!! Grasim Limited ( 2816 ) :- As per the technical chart, this stock of Cement & Cement Products sector is likely to trade profitably around Rs.2848 with a target price of Rs.2797 to Rs.2780. Consider a trading stoploss of Rs.2860..!! Lupine Limited ( 2208 ):- This stock is sellable with a stoploss of Rs.2254 registering an overbought position around Rs.2247..!! It is likely to show the price of Rs.2188 to Rs.2173 in phases…!! Above Rs.2260 take bullish view…!!
Future direction of the market… Friends, China's stock market witnessed its biggest one-day rally in 16 years on Monday. China's stock market has been improving for the last nine sessions. On the global front, on the one hand, Israel has taken the war to a desperate front by accepting the cease-fire request of the world's superpowers. A bullish frenzy is possible or China's recovery could provide a major correction in case of fund diversion of foreign funds. China's loosening of home buying rules and lowering of mortgage rates have had an impact on the stock market. In China, which has been facing recession for a long time, the government has announced several incentives to improve the economy. Pan Gongsheng, governor of the People's Bank of China, announced a reduction in the reserve requirement ratio and the key interest rate last week while addressing a press conference. Since the economy is not seeing the necessary recovery, various stimuli have been announced by China for some time now. China is currently facing a crisis in the property sector and a high rate of unemployment.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
