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Nifty ends below 11,250, Sensex at 37,121 as weak rupee, higher crude fears grip market

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The NSE Nifty50 slipped below the 50-day moving average (DMA) of 11,327 to close at 11,234, falling by 44 points. The benchmark BSE Index, Sensex dipped nearly 170 points to end at 37,121.

Nifty ends below 11,250, Sensex at 37,121 as weak rupee, higher crude fears grip market
Indian equity market on Wednesday ended with losses, failing to hold on to any gains seen intra-day as investors took to profit-booking amid persisting rupee volatility and Brent crude oil prices firming up towards the $79/bbl level.
The cues pushed the NSE Nifty50 below the 50-day moving average (DMA) of 11,327 to close at 11,234, falling by 44 points. The benchmark BSE Index, Sensex dipped nearly 170 points to end at 37,121.
Laurence Balanco of CLSA sees the Nifty falling back to the 200-DMA level of 10,740. He says, “Below the 200-DMA, next chart support is at 10,400-10,420 for Nifty. And, for Brent crude, charts point to immediate downside risk towards the 50-DMA level of $74.75.”
HDFC twins with ITC, IndusInd Bank and Reliance were major drag on the Nifty index, while support came in from the private banks like ICICI Bank and Kotak Mahindra Bank.
Nifty MidCap Index was the biggest under-performer amongst frontliners with a fall of more than 175 points to see a close just above 18,800. It led market breadth turn in favour of declines with the NSE advance-decline ratio settling at 1:2.
HDFC Bank contributed the maximum in the Nifty Bank’s fall, although ICICI Bank and Kotak Mahindra Bank kept massive losses at bay.
Bank of Baroda saw some recovery and closed the trade up nearly 3 percent, after Tuesday’s fall of over 16 percent over the Centre’s proposed merger plan with Vijaya Bank and Dena Bank.
Sugar stocks rose ahead of an expectation of export subsidy approval by the Union Cabinet, but trimmed gains after the decision was deferred.
Stocks recovered after food minister’s statement that the Cabinet will take up the matter in next week’s meeting. Dhampur Sugar, Dwarikesh Sugar and Balrampur Chini gained 2-4 percent.
In the futures market, Nifty Call option of 11,300 added 10 lakh shares in the open interest with premium slipping 36 percent and 11,400 option saw premium slipping 43 percent.
The Put option of 11,200 added more than 1.5 lakh shares in the open interest with premium falling nearly 27 percent. Nifty September Futures closed with a premium of 36 points against a premium of 31 points on Tuesday.
Asian markets mostly rose on Wednesday as investors shrugged off the escalation in trade tensions between the US and China. Japan's Nikkei 225 was up 1.1 percent to close at 23,672.52, and the Topix index added 1.5 percent to close at 1,786.
The Bank of Japan kept its monetary policy steady and maintained an upbeat view on the economy. In its policy statement, the central bank said it expects Japan's economy to "continue its moderate expansion" and that domestic demand is likely to follow an uptrend.
Chinese mainland markets ended with gains with the Shanghai composite settling 1.1 percent higher to 2,731 at close. The Shenzhen composite added 1.3 percent to close at 1,423. Hong Kong's Hang Seng Index gained 1.1 percent to close at 27,418.
In South Korea, the Kospi edged 0.2 percent lower to close at 2,308.
In Australia, the benchmark ASX 200 rose 0.5 percent to close at 6,190. Major mining stocks rose: shares of Rio Tinto surged 3 percent, Fortescue jumped 4.7 percent and BHP gained 2.9 percent.
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