Weak Expiry Session: Nifty Ends Below 25,200 Despite Late Recovery Led By Banks, Metals

Indian equity markets recovered some ground in the last hour of trade but ended lower for the third day. The Nifty index closed below 25,300 in the weekly expiry session. 

On Tuesday, the Sensex closed 57 points lower at 82,102, while the Nifty 50 ended down 32 points at 25,169. Broader markets saw selling pressure, with the Nifty Midcap index ending 0.3% lower and the Smallcap index falling 0.5%. 

The retail investor sentiment surrounding the Nifty 50 remained ‘bearish’ by market close on Stocktwits.

Stock Moves

Sectorally, metals, financials, and autos saw strong buying, while FMCG, IT, and real estate saw a sell-off.

Maruti saw 2% gains driven by record sales at the start of the festive Navratri season. Vodafone Idea gained 4% ahead of the AGR plea hearing later this week.

In other notable movers, Refex surged 15% after the board approved the green mobility business demerger scheme. And Emkay Global rallied 20% after veteran investor Kirti Doshi acquired a 21% stake in the company. 

HCC rose 3% on securing ₹2,566 crore Patna Metro contracts. 

KEC International too ended 2% higher on the back of order wins. Ashok Kumar Aggarwal of Equity Charcha noted the strength on its daily chart and positive momentum. For the short to medium term, he recommended buying between ₹890 and ₹905, with a stop-loss of ₹840, targeting a price of ₹1,020.

Stock Calls

Kush Ghodasara is bearish on HDFC AMC after a formation of a double top at ₹5,900, and the stock has been trading in a rising wedge pattern. A break below ₹5,800 would confirm a bearish breakout from a rising wedge. And if it slipped below ₹5,773, it could see a short-term bearish momentum. Ghodasara added that a break below ₹5,442 would confirm a double top and medium-term weakness. He advised that risky traders could go short below ₹5,800 with a stop-loss at ₹ 5,945 for target prices of ₹5,650 and ₹5,800.

Financial Sarthis flagged two stocks. For AU Small Finance Bank, they said a close above ₹730 on a weekly basis could take the stock to ₹770 & ₹800. For Zaggle, they identified support at ₹340 on the downside. A breakout above ₹400 on a weekly basis for this stock could take it to ₹450-₹460.

Markets: What Next?

Analyst Ashish Kyal stated that the Nifty reached a low near 25,084 and subsequently reversed. It needs a break above Gann levels of 25,361 for a positive reversal. Until then, he sees sideways action between 25,060 and 25,330 to continue.

Globally, European markets traded higher, while US stock futures indicate a positive start on Wall Street. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.