Sensex, Nifty Slide Less Than 1%; Tata Motors, Nestle End With Gains

The 30-share BSE benchmark Sensex declined 125 points or 0.19 per cent to settle at 66,282. The broader NSE Nifty dropped 110 points or 0.55 per cent to end at 19,734. From the Sensex pack, Axis Bank, Infosys, SBI, Wipro and JSW Steel closed lower, while Tata Motors, IndusInd Bank, HCL Tech and Nestle ended with gains.

On the sectoral front, Nifty PSU Bank fell 1.4 per cent, pulled down by Indian Overseas Bank and Bank of Baroda. Meanwhile, Nifty IT declined 0.6 per cent on the back of Mphasis, Infosys, and Coforge. In the broader market, Nifty Midcap100 fell 0.12 per cent and Smallcap100 dropped 0.44 per cent.

The market breadth was skewed in the favour of the bears. About 1,911 stocks declined, 1,761 surged and 148 remained unchanged on the BSE.

FII and FPIs, on Friday, saw a net purchase of Rs 317.01 crore in the cash segment. A total of Rs 10,000.86 crore was sold against a total purchase of Rs 10,317.87 crore. Domestic institutional investors saw net sales of Rs 102.88 crore in the cash segment. A total of Rs 7,763.86 crore was sold against a total purchase of Rs 7,660.98 crore.

Meanwhile, Weak revenue guidance of the IT sector and the current uptick in crude prices weighed on the sentiment. While higher-than-expected US inflation data pulled down the week's early uptrend, which was positive on a remark of a less hawkish US Fed meeting.

However, some optimism was visible from domestic factors like a steep decline in domestic inflation and impressive industrial production data, along with bright earnings expectations for Q2.

Technically, the important key resistances placed in October Nifty future are at 19,734 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional upmove with immediate resistances seen at 19,808 – 20,008 levels. Immediate support is placed at 19,606 – 19,474 levels.

Nikhil Bhatt | Research Analyst

Guest Author The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.