Mid-market update: Indian markets trade in red, while broader markets underperform, Reliance slips below a 4-month low

In the afternoon trading session on Tuesday, the Indian benchmark indices saw a modest recovery from the day’s low. Despite the recovery, the 30-share S&P BSE SENSEX was seen trading lower by 442 points at 73,448 and the Nifty 50 index slipped below the 22,300 mark and was down by 0.68%. Meanwhile, selling pressure is more intense in the Bank Nifty as the index has tumbled over 1% and slipped below the 20-DMA. India VIX surged past 17-mark and marked a fresh 52-week high.

The Nifty 50 index is trading at a 9-day low and is approaching the gap area (opening-gap area) of April 22, 2024. Additionally, it is now trading below its important short-term moving average of 20 and 50 DMA. On the options front, the highest open interest on the call (CE) option is seen at the 22,500 strike price. Meanwhile, the highest open interest addition is seen at 22,400 CE with nearly 53.61 lakh shares added by noon at the strike price of 22,400, which is massive.

Sector-wise, all the sectors were seen trading in red barring Nifty FMCG (+2.24%). The Nifty FMCG sector is trading at a three-month high. Nifty Realty (-2.73%), Nifty Metal (-2.66%) and Nifty PSU Bank (2.21%) were the top three losers among the sectoral indices.

Selling pressure is more severe in the broader market indices with Nifty Midcap 100 down by 1.91% and Nifty Smallcap 100 plunging by 1.81%. Nifty Smallcap100 has slipped below its 20-DMA.

The voting for the third phase of the Lok Sabha election is in progress, covering 93 constituencies across 12 states and Union territories. This phase includes 2 seats in Goa, 25 in Gujarat, 7 in Chhattisgarh and 14 in Karnataka. After this phase of voting, elections in these states will conclude.

The Dow Jones Futures were almost flat up by 0.05% at 39,019.

Shares of Godrej Consumer Products have zoomed nearly 7% on Tuesday. The stock price has risen despite the company reporting a net loss to the tune of ₹1,893 crore in Q4F24 against a net profit of ₹452 crore in the corresponding period last year. The loss was reported due to a one-time exceptional loss of ₹2,376 crore and the company’s revenue grew by 6% YoY. Additionally, the consolidated volume for Q4FY24 increased by 12%, driven by a 15% growth in the India business volume and a 12% growth in the Indonesia volume.

Index heavyweight Reliance Industries has slipped below a 4-month low and it is trading down by 1.38%. The stock is trading below its 20 and 50-DMA. The 14-period RSI (Relative Strength Index) has fallen below the level which was seen in October last year. The stock has seen a short build-up as the fall in price is accompanied by a rise in the open interest.