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Taking Stock: Bulls run out of charge, Sensex breaks below 34,000; telecom, banks a drag

Indian markets witnessed profit-taking at higher levels on June 9. The S&P BSE Sensex fell more than 800 points from the high of 34,811 while the Nifty50 broke below 10,200-10,100 levels.

The Sensex ended the day 413 points lower at 33,956 while the Nifty fell 120 points to close at 10,046.

Weak global cues and profit-booking saw a more than 100-point slide in the Nifty. Investors will closely track the outcome of the US Fed meeting on June 10, experts say.Taking Stock: Bulls run out of charge, Sensex breaks below 34,000 ...

“After opening on a flat note, the index gradually inched higher but weakness in the European markets triggered a sharp decline in the latter half. Finally, the Nifty index ended near 10,050 levels, almost at the day’s low,” Ajit Mishra, VP-Research, Religare Broking Ltd, told Moneycontrol.

“Since our markets are currently dancing to the global tunes, the outcome of the US Fed meet and performance of the global markets would be closely watched. We may see further profit-taking in the index and the 9,950-9,850 zone would act as a cushion. Traders should prefer hedged positions and maintain their focus on stock selection,” he said.

Sectorally, the action was seen in healthcare and realty stocks, while selling pressure was visible in telecom, Bankex, energy, oil & gas and consumer durables.

On the broader markets front, the S&P BSE Midcap index was down 0.21 percent and the S&P BSE Smallcap index fell 1 percent.

Top Nifty gainers included M&M, Sun Pharma, IndusInd Bank and Dr Reddy Laboratories.

Top Nifty losers included BPCL, Tata Motors, GAIL India and Wipro.

Stocks & Sectors

Sectorally, the S&P BSE Telecom index fell 3 percent, followed by the S&P BSE Bankex that was down 2.3 percent and the S&P BSE Oil & Gas index fell 1.9 percent.

Buying was visible in the S&P BSE Healthcare index which was up 1.1 percent, followed by the S&P BSE Realty index that was up 0.3 percent.

A volume spike of more than 100% was seen in stocks such as ITC, GMR Infra, Cadila Healthcare, SBI Life and Dr Reddy’s Laboratories.

Long Buildup was seen in stocks like Bharti Infratel, RBL Bank, ITC and Muthoot Finance.

Short Buildup was seen in stocks like Bharat Forge, Tata Chemicals, Hero MotoCorp and Titan Company.

Dr Reddy’s Laboratories, Lupin, Muthoot Finance, Adani Green and Sun Pharma were among more than 60 stocks that hit a 52-week high.

Stocks in news

IndusInd Bank share price rose over 2 percent after media reports said that the promoters planned to buy more of its shares in the secondary market.

Affle India was up 2 percent after the company said it will acquire a 66.67 percent stake in Singapore-based Appnext through one of its subsidiaries for $17.25 million (around Rs 130 crore).

Adani Green price jumped 5 percent after it bagged a manufacturing-linked solar contract worth Rs 45,000 crore from SECI.

PVR was down 7 percent after the multiplex chain reported a consolidated net loss of Rs 74.61 crore for the March quarter.

Sun Pharma jumped 2 percent after CLSA maintained a “buy” call on the stock, with a target of Rs 560 per share.

Inox Leisure share price tanked 10 percent after the company reported a consolidated net loss of 82.15 crore for the March quarter.

Century Enka share price surged more than 17 percent after the company reported a net profit of Rs 21.8 crore, CNBC-TV18 reported.

Technical View

The Nifty formed a bearish candle on the daily charts. It faced resistance near 100-DMA placed at 10,277.

The pattern indicates sell on intraday rise action in the market. Further weakness is possible. Experts are of the view that the short-term trend of the index seems to have reversed down.

The next lower supports to be watched is 9,950 and any upside bounce attempt could find resistance at 10,135 levels.

“The previous opening downside gap of March 12 at around 10,335 has acted as a key overhead resistance and led to a downward reversal from the highs. One may expect further weakness in the market in the next session,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

“On the lower side, the Nifty is expected to find support at around 10,000-9,950 levels in the short term and the index is expected to slip below this area in the next three to four sessions,” he said.