Market Watch: Was Friday a harbinger of D-St weakness ahead? | The Economic Times Markets Podcast

Market Watch: Was Friday a harbinger of D-St weakness ahead? | The Economic Times Markets Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.

Sensex ends 549 points down, Rs 2.15 lakh crore lost
HCL Tech Q3 profit jumps 31%; Ebit guidance raised
SAIL OFS sees strong retail response, subscribed 2x
GAIL approves Rs 1,046 crore buyback
Borrowing cost surges in bond market over RBI’s measures to drain out cash

Let us take a quick glance at what happened on the Dalal Street today.

Bears at last had an upper hand, and this time there wasn’t any late fight by the bulls.

Friday’s fall was such that the bulls, who were eyeing the 50,000 mark on Sensex all these days, found solace in holding above the 49,000 level at close. For Nifty, the session ended just below the key support level of 14,450.

No denying, domestic indices were trading in overbought territories and the recent rally had taken many analysts by surprise. Friday’s fall in global markets — largely on concerns over the economic recovery globally — thanks to lockdown in China and weak jobs data in the US — gave domestic stocks a chance to take a breather.

Just four of 30 Sensex stocks ended higher for the day. The advance-to-decline ratio for the broader market too was pretty weak.

Tech Mahindra, ONGC and HCL Tech fell about 4 per cent each. UltraTech Cement, ONGC and Asian Paints declined 2-3 per cent. A dozen others fell 1 per cent and more.

In the broader market, SAIL rose 4 per cent on strong retail response to its offer for sale. Canara Bank, Emami, IGL, BEL, Muthoot Finance, among others, fell about 4 per cent.

We caught up with Paras Bothra of Ashika Stock Broking to know his views on the market.

Welcome to the show, Mr Bothra
1) Advance-to-decline ratio was fairly weak on Friday. How would you sum up the market sentiment?

2) IT stocks did not react much to the strong quarterly earnings, be it Infosys or Wipro. Why so?

On technical charts, Nifty closed just above its support level of 14,450. We caught up with Nilesh Jain of Anand Rathi to decode the charts.

Welcome to the show, Mr Jain
1) Nifty was looking overbought for some days and was making Hanging Man candles. Has Friday’s session sent signs of weakness?

2) What is your view on Nifty Bank?

Globally, Asian markets ended mostly lower. European markets were trading negative in the first few hours of trade. US stock futures were hinting at a negative start for US equities later in the day.

That’s all for now. Do check out for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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