Market Watch: Is the market headed for further correction? – Economic Times

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Amritesh Malhan and here are the top headlines at this hour.

Complete lockdown in Chennai, 3 neighbouring districts

Lakshmi Vilas Bank gets LoI from Clix Capital for 51% stake buy

RIL partly paid-up shares make strong debut, surge 10%

In nine hikes, petrol price goes up by Rs 5 per litre

Debt funds see 46% jump in inflows to Rs 63,665 cr in May

WPI inflation falls 3.21% in May, but food prices rise

Lets start with what happened in the market today.

Domestic stocks settled in the red. Shares of HDFC Bank, ICICI Bank, HDFC and ITC led the fall, while brisk buying in RIL, HCL Technologies and Sun Pharma capped the downside.

Overall, Sensex closed 552 points lower at 33,229, while Nifty ended 159 points down at around 9,814.

Smallcaps outdid the midcaps and largecaps. Sectorally, BSE Bankex, Power, Metals, Consumer Durables and Capital Goods indices lost over 2 per cent each, while Energy and Healthcare indices gained up to 1 per cent.

In the broader market, BHEL, IndusInd Bank, DLF and Aarti Industries shed over 5 per cent. Vakrangee, Jubilant Life Sciences and Bank of India gained up to 18 per cent.

The Covid-19 infections are still high in India and there seems to be a resurgence in virus cases in China and the US. FII net flows into equities turned negative in last two sessions, which could be a signal of reduced risk appetite.

We caught up with Narendra Solanki of Anand Rathi to try and understand the market undercurrent.

Welcome to the show, Mr Solanki

What is your take on Mondays selloff?Narendra Solanki Byte 1

Do you see further correction in the market?Narendra Solanki Byte 2

Which are the stocks you advise investors not to jump in yet to buy?Narendra Solanki Byte 3

On the technical chart, Nifty formed a bearish candle on a daily basis. The overall structure suggested that the index will remain under pressure going ahead. We have with us Nirav Chheda from Nirmal Bang Securities to do the chart reading.

What are the technical charts telling us?Nirav Chheda Byte 1

RIL formed a golden cross on its charts. Do you see another rally on the counter?Nirav Chheda Byte 2

What is your outlook for Tuesdays session?Nirav Chheda Byte 3

Globally, Asian peers ended in the red, while European markets traded lower in early deals. US equity futures declined on signs that a second wave of the pandemic may be emerging.

Thats all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Good bye!

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Market Watch: Is the market headed for further correction? - Economic Times

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