nifty outlook: Market Watch: Nifty remains in short-term uptrend mode | The Economic Times Podcast

Indian shares snapped their 3-day winning run on Monday, dragged by tech stocks as Tata Consultancy Services (TCS) missed estimates for the June quarter results. Dalal Street is awaiting earnings reports of heavyweights for indications on how companies are weathering the inflation storm.

With support from banking, metal and energy counters, the benchmarks managed to pare losses to close flattish.

The 30-share pack Sensex recovered intra-day losses and settled 87 points lower at 54,395. Its broader peer, Nifty50, ended with a negative bias but managed to hold the 16,200 mark.

Shares of TCS fell as much as 4.6 per cent to hit a three-week low after it missed quarterly profit estimates on Friday, while its employee-related expenses soared. The index heavyweight also pulled down the Nifty IT pack by 3 per cent.

Bharti Airtel was the top loser from the 30-share pack Sensex, falling 5 per cent as news of Adani Group’s entry into the telecom sector sent the shares tumbling. HCL Tech settled 4 per cent lower, a day before its earnings as Street is expecting a weak Q1 performance from the tech major tomorrow. Infosys, Wipro, Tech Mahindra, and L&T also settled with cuts.

On the other hand, Tata Steel jumped over 3 per cent, whereas M&M, DRL, ICICI Bank, Asian Paints, Axis Bank, and Reliance settled with gains of over 1-2 per cent.

Broader markets outperformed the benchmarks as both midcap and smallcap indices settled 1 per cent higher.

Mr Nagaraj Shetti, Technical Research Analyst, HDFC Securities said the short-term uptrend status of Nifty remains intact and the market is taking temporary halt before showing further up move in the near term.

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