Markets halt 5-day losing streak after Credit Suisse lifeline lifts mood; Metals underperform, Tata Steel top loser

Q2 Earnings

After falling for 5 days in a row, Indian markets made up some of their losses on Thursday, despite mixed signals from the rest of the world. This happened after the Swiss bank Credit Suisse announced its plan to raise liquidity. But Sensex and Nifty 50 ended up going a little bit up. The stocks of banks went up again, but there was a lot of selling pressure on stocks of metals. In the market as a whole, money left small-cap stocks. But investors are still worried about the trouble in banks around the world.

Sensex ended the day at 57,634.84, up 78.94 points, or 0.14 percent. While the Nifty 50 went up by 13.45 points, or 0.08%, to end at 16,985.60.

With a gain of 2.5%, Nestle was the Sensex stock that did the best. While Asian Paints added over 2.3% to its rise. HUL, Titan, Sun Pharma, and Power Grid were also among the top gainers, going up between 1.6% and 2.2%.

In the banking and financial sector, SBI, Bajaj Finserv, Axis Bank, and HDFC Bank all went up by about 1%.

The biggest losers were Tata Steel, which fell 3.3%, IndusInd Bank, which fell 2.6%, and Bharti Airtel, which fell 1.4%.

The BSE SmallCap market fell by more than 188 points. While the Midcap index went down just a little bit. The BSE Sensex Next 50 went up almost 358 points, which was a big boost to the upside.

In terms of sectoral indices, the Metal index on BSE was the biggest loser and stopped the rise. The index went down by more than 527 points. While the IT index fell by 207 points and the consumer durables index fell by 106 points. On the other hand, the BSE Bankex rose by almost 134 points.
At the interbank forex market, the rupee fell against the US dollar for the fourth day in a row. This was because foreign funds were leaving the country and counterparts had mixed feelings. The local unit was worth 82.77 per dollar at the end of the day, up from 82.65 per dollar the day before.

Religare Broking’s Vice President of Technical Research, Ajit Mishra, said, “After a recent drop, the markets moved around a lot and ended up almost the same. At first, the tone was negative, but a rebound in a few heavyweights helped Nifty make up its losses and end the day flat. On the sector level, there was a mixed trend. FMCG, Energy, and Pharma all traded higher, but metal and IT ended lower. The broader indices also traded in a mixed way and ended the day flat or just a little bit lower.”
Credit Suisse said on Thursday that it will borrow up to CHF 50 billion from the Swiss National Bank (SNB) through a Covered Loan Facility and a short-term liquidity facility. This made the stock of the Swiss bank go up by more than 32% in one day. Also, there was some good news for European markets.

Mishra said, “Go ahead.” “Even though global clues are still mixed, oversold positions and the fact that Nifty has support around 16,800 could lead to a bounce back to the 17200 zone. Still, participants shouldn’t go too far and limit their positions to stocks that are doing relatively well.”

Rupak De, a Senior Technical Analyst at LKP Securities, had this to say about the Nifty 50: “Before going up, the Nifty found support at the bottom of the falling channel. A long-legged Doji pattern has formed on the daily chart, which shows that the market isn’t sure what to do. Also, the index has found support around times when there was a lot of trading. In the next few months, the stock is likely to go up to 17250. At 16950, closing basis support is seen at the bottom.”
Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, had this to say about Bank Nifty: “On the weekly expiration day, some people bought at lower levels of the Bank Nifty index, but the overall trend is still down as long as it is below the level of 40,000. The Index’s immediate barrier is at 39,500, and if it stays above that level for a while, it could lead to shorts covering and a move towards 40,000. Downside support is at 38500, and if it is broken, more selling will happen.”

The ECB meeting on monetary policy will be the main focus of the markets.

Disclaimer: The opinions and suggestions above are not those of Mint, but of individual analysts or brokerage firms. Before making any investment decisions, we tell people to check with certified experts.

Source: Team CurrencyVeda