Sensex, Nifty nosedive on last trade session of 2019; PFC, SpiceJet, Tata Communications stocks gain

The stock market of India witnessed heavy profit-booking on the last trading day of the year 2019. According to the share market experts, this profit-booking was mainly caused by the mutual funds fund managers which were expected as they have indulged in their mutual funds NAV management in last fortnight. The BSE Sensex crashed 304 points and closed at 41,253 levels while the Nifty-50 index nosedived 87 points and closed at 12,168 levels. Bank Nifty index dipped 193 points and closed at 32,161 levels.

Speaking on the profit-booking taking place in the last trade session of the year 2019 Prakash Pandey, MD & CEO at Plutus Advisors said, "The profit-booking at the Indian indices was long-awaited as FIIs were pumping money through mutual fund AMCs, which was a part of their mutual funds NAV management. In the new year 2020, we are expecting some more profit-booking but the Nifty-50 index has strong support at 12,070 levels and if the Nifty comes near these levels, it should be seen as a buying opportunity for the share market investors."

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Nagaraj Shetti, Technical Research Analyst, HDFC securities said, "The selling pressure seems to have intensified from near the all-time highs today, which is the last trading day of 2019 and the Nifty closed the day sharply lower. A long negative candle was formed today with after the formation of a slightly lower top at 12286 levels of the last session. Technically, this pattern could be a cheering factor for bears to make a comeback from the highs." Shetti went on to add that Nifty is currently placed near the immediate support of 12120 levels and a move below this support could open up short term downward correction in the market. The important reversal pattern is yet to be confirmed at the highs.

Despite heavy profit-booking, infra stocks witnessed frsh buying as the BSE Infra index soared 0.78 per cent after the Closing Bell. Infra major GAIL share price soared 1.98 per cent, KNR Constructions shares skyrocketed 6.30 per cent, shares of Power Finance Corporation or PFC went up 2.89 per cent while SpiceJet and Tata Communications stocks gained 2.04 per cent and 2.72 per cent respectively.

Among the major Asian markets, the Japanese Nikkei crashed 181 points and closed at 23,656 levels, South Korean Kospi dipped 0.30 per cent and closed at 2,197.67 levels. Hang Seng dipped 129 points and closed at 28,189.75 levels while the Shanghai markets soared 0.33 per cent and closed at 3,050.12 levels.