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Mid-day Mood- Double whammy of rising bond yields, Iran-Israel conflict pulls market down

16 Apr , 2024   By : Debdeep Gupta


Mid-day Mood- Double whammy of rising bond yields, Iran-Israel conflict pulls market down

The equity benchmarks continued to trade lower on April 16 afternoon as rising bond yields and Israel's vow to respond to Iran's attack fanned worries about a widening conflict. Broader markets, however, outperformed the Sensex and the Nifty as volatility cooled off marginally.


The Sensex was down 422.27 points or 0.58 percent at 72,977.51, and the Nifty was down 98.00 points or 0.44 percent at 22,174.50. The market breadth was in favor of gainers as around - 2,208 shares advanced, 958 shares declined, and 82 shares unchanged.


Sectoral trend


Among sectors, the Nifty Media index was the top performer of the day as it gained over a percent, followed by Nifty Auto and Nifty Pharma indices. On the contrary, the Nifty IT index was the worst performer weighed by weakness in Infosys, TCS, HCL Technologies, and Wipro.


Fundamental View


Deepak Jasani, Head of Retail Research at HDFC Securities believes that the rising geo-political tensions in the Middle East could keep risk sentiment in check as oil and gold prices lift. "The short-term trend of Nifty has turned bearish as it has violated the crucial support of 20-days EMA, placed at 22,370," he opined.


Technical view


Sameet Chavan, Head Research, Technical, and Derivative - Angel One said that 22,000-22,100 is the next potent support zone for Nifty and until there is any major move on the global front, it is likely to hover in the similar zone. On the flipside, resistance was placed around 22,430-22,500 for the Nifty index.


KEY NIFTY GAINERS


EICHER MOTOR, ONGC, DIVI'S LAB


Key Nifty losers


LTIMindtree, Infosys, IndusInd Bank


Top Sensex leaders


Titan, Hindustan Unilever, HDFC Bank


Top Sensex laggards


Infosys, IndusInd Bank, Bajaj Finserv


Stock moves


Vodafone Idea: The stock of this telecom operator fell nearly 4 percent to Rs 12 per share after the follow-on public offering (FPO) anchor book is set to open today. The Rs 18,000 crore-FPO aims to boost existing 4G sites, and set up new 4G sites and 5G sites.


Jio Financial Services: The stock jumped over 4 percent to Rs 271.95 per share after they announced new broking and wealth management venture. BlackRock, the world's largest asset manager, is collaborating with Jio to establish an asset management business in India.

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