Markets halt 5-day losing streak after Credit Suisse lifeline lifts mood

Sensex gained by 78.94 points or 0.14% to end at 57,634.84. While Nifty 50 was up by 13.45 points or 0.08% to end at 16,985.60.

Nestle was the top-performing stock on Sensex with an upside of 2.5%. While Asian Paints extended its rally by over 2.3%. HUL, Titan, Sun Pharma, and Power Grid were also among the top gainers surging between 1.6% to 2.2%.

In banking and financial socks, SBI, Bajaj Finserv, Axis Bank, and HDFC Bank picked up momentum with an upside of around a percent.

Among the top losers were — Tata Steel down 3.3%, IndusInd Bank tumbling by 2.6%, and Bharti Airtel lower by 1.4%.

In the broader market, BSE SmallCap shed over 188 points. While the Midcap index was marginally down. BSE Sensex Next 50 soared nearly 358 points, adding to the upside significantly.

In terms of sectoral indices, on BSE, the Metal index capped the upside by emerging as the top loser. The index saw a decline of over 527 points. While IT and Consumer Durables indexes dipped by 207 points and 106 points respectively. On the contrary, BSE Bankex surged nearly 134 points.

Ajit Mishra, VP – of Technical Research, at Religare Broking, said, “Markets traded volatile and ended almost unchanged, taking a breather after the recent slide. The tone was negative initially however rebound in select heavyweights helped Nifty to recoup losses and close flat. Meanwhile, a mixed trend was witnessed on the sectoral front wherein FMCG, Energy, and Pharma traded upbeat while metal and IT ended lower. The broader indices too traded mixed and closed flat to marginally lower.”

At the interbank forex market, the rupee weakened for the fourth day in a row against the US dollar amidst foreign funds outflow and mixed sentiment in counterparts. The local unit closed at 82.77 against the dollar compared to the previous day’s print of 82.65 per dollar.

On Thursday, Credit Suisse said that it will borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a Covered Loan Facility as well as a short-term liquidity facility. This led the Swiss lender’s stock to rally over 32% in the day. Also, European markets witnessed some upside.

Going ahead, Mishra said, “Global cues are still mixed however oversold positions and the existence of support around 16,800 in Nifty may trigger a rebound towards the 17200 zone. Having said that, participants shouldn’t go overboard and restrict positions to stocks that are showing relatively higher strength.”

On the Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities said, “the Nifty found support at the lower band of the falling channel before moving higher. On the daily chart, a long-legged Doji pattern has formed, which suggests indecisiveness. Besides, the index has found support around previous congestion. Over the short term, the stock is likely to move towards 17250. On the lower end, closing basis support is visible at 16950.”

While on Bank Nifty, Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities said, “The Bank Nifty index witnessed some buying from the lower levels on the weekly expiry day however the undertone remains bearish as long as it says below the level of 40,000. The Index’s immediate hurdle stands at 39,500 and if sustained above it can witness some short covering towards 40,000. The downside support is at 38500 and a breach below it will lead to further selling pressure.”

Markets will focus on the ECB monetary policy meeting due later tonight.

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