Indian Indices Extend Losses, Hit 4-month Lows Amid Global Concerns

Dear Trader –

The benchmarks have lost nearly five per cent over the last six sessions, which pushed the Nifty into oversold territory for the first time in 16 months. The BSE benchmark Sensex plunged 901 points or 1.41 per cent to settle at 63,148. The broader NSE Nifty dropped 260 points or 1.35 per cent to end at 18,950, its first close below the 18950.00 mark since June 28.

The volatility index jumped 3.69 per cent to 11.73 at the close, its highest in over three weeks. The market capitalisation of all listed companies on the BSE declined by 3 lakh crore to Rs 306.22 lakh crore. From the Sensex stock, M&M, Bajaj Finance, Asian Paints, and Nestle were the top laggards, falling 3-4 per cent. JSW Steel, Bajaj Finserv, and Titan also ended with cuts. While Axis Bank, NTPC, HCL Tech and IndusInd Bank ended with gains.

Sector-wise, Nifty Metal fell 1.6 per cent, dragged by JSW Steel, Adani Enterprises, and Vedanta. Banks, auto, financial, FMCG, IT, pharma, and realty sectors also ended in the red. Meanwhile, Nifty Midcap 100 fell 1.2 per cent, dragged by Paytm, Microtech Developers, and Jubilant Foods. Nifty Smallcap 100 declined 0.34 per cent.

FII and FPIs, on Thursday, saw a net sales of Rs.7702.53 crore in the cash segment. A total of Rs.17941.58 crore was sold against a total purchase of Rs.10239.05 crore. Domestic institutional investors saw a net purchase of Rs.6558.45 crore in the cash segment. A total of Rs.7042.26 crore was sold against a total purchase of Rs.13600.71 crore.

Meanwhile, To date, the actual domestic Q2 results are below par in comparison to the excited earnings forecasted. Similar disappointments are visible in developed economies. A downgrade in earnings and valuation is arising due to the risk of further slowdown of the economy due to geopolitical and elevated interest rates. Also selling pressure intensified due to expiry-led volatility influencing investors to stay cautious.

Technically, the important key resistances placed in October Nifty future are at 18965 levels, which could offer the market on the higher side. Sustainability above this zone would signal open the door for a directional move with immediate resistances seen at 19009 – 19109 levels. Immediate support is placed at 18808 – 18676 levels.

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