A morning walk down Dalal Street: 11,100 crucial for Nifty; oversold stocks may see some bounce

Episode 1761,   Oct 09, 2019, 01:30 AM

Probably not a manic Monday but 6 straight sessions of decline put bulls on the back foot for now.

In the last six sessions of losses, both Sensex and Nifty have come off nearly 4 percent while the overall market capitalisation of BSE-listed firms has dropped by more than Rs 6 lakh crore.

Analysts said the market continued its recent trend due to the lack of fresh triggers and the second-quarter earnings will dictate the mood of the market in the near-term.

Well, the sentiments were already down after MPC slashed its growth forecast to 6.1 percent from 6.9 percent earlier which is likely to weigh on the second-quarter earnings as well.

Defensive bet Pharma declined due to increasing US FDA observations while IT slid ahead of kickstart in second-quarter earnings.

Experts suggest that we may see some bounce due to oversold positions in the index but the bias would remain on the negative side.

More than 350 stocks hit fresh 52-week low which includes names like Piramal Enterprises, IndusInd Bank, Lupin, Grasim Industries, PNB Housing Finance, LIC Housing Finance, Aurobindo Pharma, etc. among others.