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Indian Markets Slip: IT Stocks Drag Down Indices
22 Sep
Summary
- Domestic indices declined on Tuesday, September 22, influenced by IT stocks.
- Nifty 50 fell to 23,329 and BSE Sensex to 74,529.08.
- Analyst Jay Thakkar recommended buying Glenmark, Bharat Forge, and Varun Beverages futures.
On Tuesday, September 22, Indian benchmark stock indices experienced a reversal of earlier gains, succumbing to pressure from declining IT stocks. This weakness in the technology sector arose from concerns regarding demand and earnings outlooks. The negative sentiment in IT shares overshadowed the positive effect of a fifth consecutive session of falling oil prices.
Consequently, the Nifty 50 saw a decline of 0.36%, closing at 23,329, while the BSE Sensex dropped by 0.44% to settle at 74,529.08. Ahead of the weekly derivatives expiry, market participants noted proposals by the regulator aimed at overhauling derivatives settlement, potentially reducing typical expiry-day volatility.
Looking ahead, analysts project a trading range of 23,000-24,000 for the Nifty 50. Key supports are identified at 23,000, with resistance at 24,000. The decline in international crude oil prices and India VIX is viewed positively for equity markets.
Jay Thakkar of ICICI Securities recommended buying futures for Glenmark, Bharat Forge, and Varun Beverages. Glenmark futures were advised in the range of ₹2,450-2,465 with targets of ₹2,520 and ₹2,550, citing a positive trend in the Nifty Pharma Index. Bharat Forge futures were recommended between ₹1,990-2,010, with targets of ₹2,070 and ₹2,100, expecting upward momentum from short covering and call unwinding. Varun Beverages futures were suggested in the ₹425-435 range, targeting ₹455-470, due to recent short covering and support at the 400-420 levels.
