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Benchmarks hit record but small-caps witness sharp selloff; here's what investors should do on Wednesday

The price action in Nifty remains bullish though there is not much of a headway in the markets

Sakshi Batra
Last Updated : May 17, 2024, 14:12 IST

Market watchers are positive on the company as they believe that triggers like RAC components, PLI scheme and commencement of two new Greenfield facilities to provide long term catalyst for growth.

Equities turned volatile during the fag-end of the session and profit-booking in public banks and metal stocks along with select pharma, FMCG, and realty stocks. However, the downside was limited by gains in IT stocks and heavyweights like Bharti Airtel, HDFC, Kotak Bank, and Reliance Industries.

The BSE Sensex index slumped 471 points from the fresh record high of 54,779.6, touched during intra-day trade, and hit a low of 54,308. The index, however, recovered swiftly to close at 54,555 levels, up 152 points or 0.28%.

On the NSE, the Nifty50 index shut shop at 16,280 levels, up 22 points or 0.13%. Earlier today, it claimed a new lifetime high of 16,359.

Meanwhile, in the broader markets, the BSE MidCap and SmallCap indices bled 1% and 2%, respectively.

The intensity of the selling took most of the market by surprise even as the benchmark indices managed to keep a poker face amid the mayhem.

Nifty IT index hit fresh high, led by gains in Tech Mahindra, Infosys, HCL Tech, Wipro and TCS, among others

Shares of Coal India Ltd. shed 1.75% to Rs 140.75 apiece after the company reported net income for the first quarter that missed average analyst estimate. Shares of Tejas Networks Ltd. advanced 5% to Rs 360.75 apiece. This is the fourteen consecutive session in which the stock has gained by same magnitude.

Here’s how experts see markets trading on Wednesday

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

The second half of the session witnessed a sharp decline to 16,200 followed by a recovery of 80 points in the last hour. It formed a Doji sort of candle on the daily scale as it closed flat near to its opening levels.

Now, the index has to hold above 16,250 zones to witness an up move towards 16,400 then 16,500 zones while on the downside support is seen at 16,150 and 16,000 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities

After a strong volatile session, the index managed to close the day on a positive note at 16,280 and formed a Doji candle pattern on the daily chart for the second consecutive day which signals indecision in the markets.

The Nifty again respected the support zone of 16,200 as expected, and we witnessed a good pull-back from the same level which hints until holding above 16200 zone.

The index may see some extension in the existing consolidation zone of 16,200-16,350 zone and either side breakout will decide the final direction move.

Manish Shah, Founder, www.Niftytriggers.com

Nifty closed the day on a flat note. Nifty continues to hold above the gap support at 16162-16188. As long as this support holds the market should hold higher. A break below the support at 15950 could result in a decline towards 16000 odd levels which is again a buying area.

The price action in Nifty remains bullish though there is not much of a headway in the markets. Nifty needs a pop above 16350 for more upsides towards 16450 and above that to 16800. Probabilities favour a rally to 16,450 over next couple of days. Nifty is trying out patience of traders in the context and the interest has again shifted to large caps

Published: August 11, 2021, 08:29 IST