Stock market closing: Bloodbath on Nifty, Sensex, metal index loses 3.95%, media down by 2.32% during the day

Both indices, Sensex and Nifty closed the week in the reds. While Nifty closed the week at 24,530.90 points, down by 1.09%, Sensex shed around 738 points to close the day at 80,604.65 points on 19th July, 2024.

During the day, all broad market indices witnessed a bloodbath, with most smallcap and midcap indices ending the day in red. The only exception to this was the India VIX, which inched up 2.17% to close the week. A similar carnage was seen in sectoral indices as well, with all of them closing in red.

Auto was down by 2.4%, while financial services was down by 1.09%. Media lost 2.32%, while metal was the biggest laggard, shedding 3.95% during the day. Other indices to close in red include pharma (down by 1.65%), PSU banks (down by 1.41%), realty (down by 2.36%), healthcare (down by 1.72%), consumer durables (down by 1.93%) and oil and gas (down by 2.78%).

Ajit Mishra – SVP, Research, Religare Broking Ltd. notes that after a flat start, the Nifty gradually declined throughout the day, ultimately closing near the day's low at 24,530.90 level. The broader indices also faced pressure, dropping over 2% each.

"This decline signals caution ahead of the Union Budget, as participants chose to book profits. We may see further dips in the Nifty, with the next crucial support at the 24,150 level. Traders are advised to avoid aggressive positions and opt for hedged trades. It is also recommended to focus on index majors rather than midcap and smallcap stocks for now", said Mishra.

During the day, Infosys (up by 1.78%), ITC (up by 0.62%), Asian Paints (up by 0.60%) and Britannia (up by 0.06%) managed to inch up, and were amongst the top gainers for the day. On the other hand, Tata Steel (down by 4.97%), JSW Steel (down by 4.68%), BPCL (down by 3.98%), Hindalco (down by 3.91%) and ONGC (down by 3.44%) were amongst the leading laggards.

Out of the 2,738 stocks traded during the day, 530 saw advances, while 2,181 saw declines. Another 72 remained unchanged. 86 stocks hit their 52-week high price, while 23 stocks hit their 52-week low as well. 54 stocks touched the upper circuit during trading today, but most of them (157) remained in the lower circuit.

Expert Outlook

Amol Athawale, VP-Technical Research, Kotak Securities is of the view that the medium term texture of the market is still in to the positive side. "However, the current market texture is non-directional and volatile hence level based trading would be the ideal strategy for the traders. 24,500/80,400 and 24,350/80,000 would act as a key support zone for the bulls while 24,850-25,000 / 81,600-82,000 could be the key resistance areas for the traders. However, below 24,350/80,000 the sentiment could change. Below the same, positional traders may prefer to exit out from the trading long positions. For Bank Nifty now, 52,800 and 53,200 would be the immediate resistance areas for the positional traders", he continued.

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd explains that as we approach the upcoming Budget week, the volatility index may experience an uptick. This is due to India VIX teetering on the edge of a consolidation breakout.

"As far as levels are concerned, a sustainable plunge below 24500 is likely to provide some more respite to the benchmark for a potential downside to 24,300-24,200 on an intermediate basis, while the sacrosanct support lies at 24,000 mark. The trading range is highly anticipated to broaden amidst the budget week, and hence, proper risk management is warranted for the participants. Furthermore, while looking at the elevated parameters and rising volatility caution is recommended.", Krishan underlined.