Taking Stock | Manic Monday! Sensex plunges 800 points; Nifty below 11,300 dragged by IndusInd Bank, Tata Motors

© Nishant Kumar
Taking Stock | Manic Monday! Sensex plunges 800 points; Nifty below 11,300 dragged by IndusInd Bank, Tata Motors

Tracking weak global cues, as well as rising fears of a second wave of COVID-19 related cases that could lead to further shutdown across the globe hurt investor sentiment on Monday and led to profit-taking at higher levels.

The S&P BSE Sensex plunged more than 800 points while the Nifty50 failed to hold on to 11,300 levels but took support near 11,250.

“Indian benchmark indices succumbed to profit booking in the second half of the trading day and ended more than 2% down. It was in sync with global cues which turned negative following a surge in infections in various countries including in Europe,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Additional restrictions were being considered in Europe following an increase in infections. With high valuations and worries that earnings may not justify such valuations anytime soon, markets may trade uncertain for the time being. Stay cautious,” he said.

Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 811 points to 38034 while the Nifty50 fell 254 points to close at 11250 levels.

Sectorally, the profit-taking was visible in the telecom, realty, metals, auto, and healthcare space.

Top Nifty gainers include names like TCS, Infosys, and Kotak Mahindra Bank.

Top Nifty losers include names like JSW Steel, Hindalco, Tata Motors, and IndusInd Bank.

Stocks & Sectors:

Sectorally, the selling pressure was seen in the S&P BSE Telecom index which was down 5.7 percent, followed by the S&P BSE Realty index that fell 5.7 percent, and the S&P BSE Metal index fell 4.7 percent.

Volume spike of more than 100% was seen in stocks like Adani Enterprises, BHEL, Escorts, and Indiabulls Housing Finance.

Short Buildup was seen in stocks like Indiabulls Housing Finance, RBL Bank, and Bharti Infratel.

More than 140 stocks on the BSE hit a fresh 52-week high that includes names like Bayer Cropsciences, Dr. Reddy’s Laboratories, Apollo Hospitals and VST Tillers.

Technical View:

Nifty formed a bearish candle on the daily charts

The index closed below 5-Days EMA as well as 50-Days EMA’

Experts are of the view that as long as Nifty trades below the crucial support of 11300 the selling pressure could extend towards 10950-11000.

“The markets have broken the support of 11300 on a closing basis and this is definitely an alarming situation. We could drop to 10950-11000 levels as the fall today has been fierce and on the back of good volumes. The resistance on the upside is at 11550-11600. Until then the markets look weak,” Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments told Moneycontrol.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.