Frontline indices, the Sensex and the Nifty 50, declined for the third consecutive session on Wednesday, January 7, amid mixed global cues. The Sensex dropped 102 points, or 0.12%, to end at 84,961.14, while the Nifty 50 settled at 26,140.75, down 38 points, or 0.14%. The mid and small-cap indices outperformed. The BSE Midcap and Smallcap indices rose 0.47% and 0.12%, respectively.
Why did the Indian stock market fall for the third consecutive session?
Stock market benchmarks ended in the red for the third consecutive session, reflecting cautious market sentiment ahead of the start of the Q3 earnings season.
Relentless FII selling remains a key concern, and if the December quarter earnings fail to meet expectations, it may aggravate foreign capital outflow. Even though DIIs may remain net buyers, continuous FII selling will likely result in a prolonged period of modest returns.
Top gainers in the Nifty 50 index
Titan Company (up 3.94%), HCL Technologies (up 2.36%), and Wipro (up 1.79%) ended as the top gainers in the index.
Most active stocks in terms of volume
Vodafone Idea (45.7 crore shares), YES Bank (18.9 crore shares), and PC Jeweller (18.9 crore shares) were the most active stocks in terms of volume on the NSE.
140 stocks hit 52-week highs
As many as 140 stocks, including Vedanta, Titan Company, Tata Consumer Products, SBI Life Insurance Company, Nestle India, Eicher Motors, and Bajaj Auto, hit their 52-week highs in intraday trade on the BSE.
Nifty’s technical outlook
According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, for Nifty, the 50-day EMA zone of 25,950-25,900 will act as an immediate support.
Shah said any sustained move below the 25,900 level could lead to the index extending its weakness further down towards the 25,800 level, followed by 25,700.
On the upside, Shah said the zone of 26,200-26,250 will act as an immediate resistance and moving above 26,250 could lead to continuation of the up move in the index.
Rupak De, Senior Technical Analyst at LKP Securities, said in the near term, the trend is likely to remain sluggish, with the range placed between 26,000 and 26,300.
“Any decisive fall below 26,000 may trigger further weakness. On the other hand, a decisive move above 26,300 would require a directional up move in the Nifty,” said De.
