Stock Market: Nifty abandons 20k post; heavyweights invite bear on street
Photo credit X Power Grid
By S Jha
New Delhi, September 20: It happens once in a blue moon that HDFC Bank rallies or goes down by four per cent. But whenever it happens, indices also go in the direction of the HDFC bank. But it was a double whammy for the indices on Wednesday as HDFC bank and Reliance Industries, two heavyweights of the indices, tanked by almost four per cent and two per cent respectively.
HDFC bank has been downgraded by Moura, a leading brokerage firm. There are commentaries that the HDFC bank may underperform in the aftermath of the merger with HDFC. Chartists also claim that HDFC Bank has gone below crucial support level. A weak HDFC Bank is arguably a bad omen for the market even while the likes of the PSU banks, Axis Bank and IndusInd Bank have been trending up.
Nifty closed at a crucial level of 19900, giving up the peak of 20250, seen a few days ago. If the retracement play unfolds, the index may go further down, according to the technical chartists. Sentiments have turned cautious also on the back of the crude oil running away ever since Saudi Arabia and Russia jointly announced production cuts to stabilise the prices. With Brent Crude going past $95 per barrel, the chartists are also claiming that the momentum could take the price to the level of $105 per barrel, which will be a super negative news for India.
Retail inflation already remains heated. The firming up of the crude oil price could give momentum to negative sentiments in the market.
Yet, the power sector continues to buzz, unfazed by the bearish sentiments. Power Grid broke out of its 52-week level to close at Rs 205, with strong momentum seen at the closing hour. Similar was the case with the lies of NTPC, Coal India and other power sector scrips.
AU Small Finance Bank ducked the bearish trend to close at the day’s high with a gain of three per cent, while AXIS bank erased all its gains in the first session. The PSU banks reported profit booking after stellar show in the last few days. Carbong trading firm EKI Energy, which has already given astronomical returns, closed with gains of 20 per cent.
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