Stock Market Today: Nifty 50, the benchmark index of the Indian equity market, snapped a five-session winning streak on profit booking at high levels on Wednesday, June 19. Shares of some large companies including Reliance Industries, Larsen & Toubro and Bharti Airtel were the biggest drag on the index.
Indian stock markets halted record gains in the past few sessions as investors across segments booked profits amid a weak global economy and lack of fresh domestic catalysts.
The market has priced in most of the positive factors and is now focusing on policy announcements and the upcoming budget, with experts predicting that the market will have limited upside potential until the budget is announced in July.
“Ahead of the budget announcement, the market may see stock and sectoral moves on expectations that the government may increase spending on sectors to boost growth,” said Prashant Tapse, senior vice president (research) at Mehta Equities.
The Nifty 50 hit a fresh record high of 23,664 during trading hours but could not sustain the gains and ended at 23,516, down 42 points or 0.18 per cent.
However, gains in some bank stocks and big IT companies helped limit the index’s decline.
The 30-stock Sensex index also hit a fresh record high of 77,851.63 during trade, but with 20 stocks losing ground, it ended nominally at 77,337.59, up 36 points or 0.05 per cent.
Profit booking was also seen in the midcap and smallcap segments with the BSE Midcap and Smallcap indices declining by 0.91 per cent and 0.58 per cent respectively.
The total market capitalization of all BSE listed companies is approximately ₹From nearly 4.34 crore. ₹43.72 crore in the previous session, investors lost around ₹3.2 lakh crores in one session.
Today’s Top Nifty 50 Gainers
Only 11 stocks in the Nifty 50 pack ended higher with the top gainers being Axis Bank (up 3.11 per cent), HDFC Bank (up 3.06 per cent), ICICI Bank (up 1.92 per cent), IndusInd Bank (up 1.86 per cent), Kotak Mahindra Bank (up 1.49 per cent) and SBI (up 1.11 per cent).
Top decliners in Nifty 50 today
Titan (down 3.60%), Maruti Suzuki (down 2.60%), Bharti Airtel (down 2.41%), Bajaj Auto (down 2.40%), BPCL (down 2.32%) and Larsen & Toubro (down 2.23%) were among the top losers.
Today’s Sector Indexes
The Nifty Bank index hit a fresh record high of 51,957 during trading hours and ended at 51,398.05, up sharply by 1.90%. Ten stocks were gainers while only two declined – AU Small Finance Bank (down 1.25%) and Bank of Baroda (down 0.87%).
The Nifty Private Bank index rose 2.01 per cent while the PSU Bank index ended with a nominal gain of 0.09 per cent.
Among the decliners, Nifty Realty (down 2.83%), Consumer Durables (down 1.96%), Oil & Gas (down 1.74%), Auto (down 1.30%), Media (down 1.29%) and Metals (down 1.18%) were the biggest losers.
Expert Market Insights
“Domestic markets got off to a strong start following an early and favourable forecast of monsoon. However, the slow progress of the monsoon has given the markets a breather,” said Vinod Nair, head of research at Geojit Financial Services.
“The banking sector is holding up well after a slump since the start of the year, supported by a recovery in Foreign Investment Institutions (FII) inflows due to the continued decline in US 10-year Treasury yields. Globally, UK inflation has eased to the Bank of England’s target of 2 per cent and all eyes are on the Bank of England’s policy decision tomorrow,” Nair said.
Nifty 50 Technical Analysis
Shrikant Chauhan, head of equity research at Kotak Securities, said the Nifty 50 has been facing consistent selling pressure at higher levels after opening with a gap up.
On the daily chart, the Nifty has formed a bearish candlestick, indicating temporary weakness from current levels. However, Chouhan believes that the short-term quality of the market remains good.
“We see 23,450/77,100 as a key support zone for day traders. A break below this level could see a quick intraday correction towards 23,350-23,300/76,800-76,600,” Chouhan said.
“On the other hand, 23,660/77,850 could be an immediate breakout level for the bulls. Above 23,660/77,850, the market is likely to rise to 23,775-23,800/78,000-78,200. The intraday market structure is directionless and, therefore, level-based trading will be an ideal strategy for day traders,” Chouhan said.
According to Rupak De, senior technical analyst at LKP Securities, market sentiment remains in favour of a near-term bullish trade as the index rose above the 55 exponential moving average (EMA) on the hourly chart.
“The short-term trend remains strong. A dip towards the 55-hourly EMA, which is currently fixed at 23,340, is likely to trigger buying. In the short term, the index can rise to 23,800 or even above,” De said.
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Disclaimer: The views and recommendations expressed are those of the individual analysts, experts and brokerage firms and not of Mint. You are advised to consult a qualified professional before making any investment decisions.
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