Stock market: Heavy selling was seen in the Indian stock market on Thursday, 19 February. Investors booked profits across all sectors after the recent surge in the market. Due to this, the Sensex fell by 1,470 points in intraday trade. Whereas Nifty was seen going to intraday low of 25,388.75 in today’s trading session. Although the index made some recovery, it finally closed with a big fall. At the end of the trading session, Sensex fell 1,236 points or 1.48 per cent to close at 82,498.14. At the same time, Nifty fell 365 points or 1.41 percent and closed at 25,454.35.
Large-scale selling also affected mid- and small-cap indices. The BSE 150 Midcap index closed down 1.54 percent and the BSE 250 Smallcap index closed down 1.16 percent. Investors lost around Rs 8 lakh crore in a single day as the total market capitalization of BSE listed companies declined to around Rs 464 lakh crore from Rs 472 lakh crore in the previous session.
The biggest falling stocks in Nifty included InterGlobe Aviation, M&M, Bharat Electronics, UltraTech Cement and Trent. While Dr Reddy’s Laboratories, ONGC, HDFC Life and Hindalco Industries were the biggest gainers. All sectoral indices closed in the red with Auto, Capital Goods, Realty, Power, Consumer Durables, Media falling 2-2 per cent each.
How can the market move in future?
Nagaraj Shetty, Senior Technical Research Analyst, HDFC Securities It is said that due to increasing geo-political tension between US and Iran, huge fluctuations were seen in Nifty on Thursday and the market fell by 365 points. After opening on a positive note, Nifty could not hold near the level of 25900 and slipped above it.
A long-range bear candle (about 500 points high low range) has formed on the daily chart which closed near the swing low of February 16. Technically, this market action is indicative of the formation of a ‘Bearish Engulfing’ pattern and a sharp decline in the range of the last four sessions in a single session. This is not a good sign.
Today on Thursday, the short term trend of Nifty has sharply reversed downwards after a slight rise. If it goes below 25400, Nifty may fall to the next support level of 25200-25100 in short term.
Market Experts It says that valuations have come to decent levels for large caps, but remain high for mid and small caps, due to which the market remains range-bound. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Nifty is trading at around 20 times FY2027 estimated earnings, while NSE Midcap and NSE Small-cap indices are trading at 28 and 24 times FY27 estimated earnings, respectively, it said. This makes this market a stock picker’s market. In such a situation, we should focus only on selected quality shares.
Bonanza Research Analyst Abhinav Tiwari It is said that due to geopolitical risk and increase in crude oil prices, there may be more volatility in the market in the short term. However, strong domestic fundamentals suggest that any market correction could be a buying opportunity for long-term investors rather than a signal of a trend change.
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