Shares of private lender Axis Bank ended lower for the sixth straight day in mid-week trading. The stock has lost over 12 percent during this period.
0.6 percent or 1.6 crore shares of the bank exchanged hands in two large trades on Wednesday. The stock fell as much as 4.5 percent post the deals, before ending 3.2 percent lower.
Sources within the dealing rooms tell CNBC TV-18 that a leading foreign institution was broker to this deal and the buyers and sellers of this deal are both likely to be Foreign Institutional Investors.
Support Becomes Resistance
"Having declined down to the support, there is a possibility of a minor pullback rally in the market from near 16800-16750 levels in the next 1-2 sessions. Immediate resistance is placed at 17000 levels," Nagaraj Shetti of HDFC Securities wrote in a note.
Financials continue to see selling pressure with the Nifty Bank shedding 10 percent from its record high that it hit just two weeks ago.
Dealers indicate that flows are mixed at the FII desk with defensives like Pharma, IT, and FMCG being well bid. After a close below 17,000, the dealers now see Nifty to find support at levels of 16,640 on the downside.
Besides Axis Bank, here are some other stocks that have been part of the dealing room chatter today:
Dr Lal Pathlabs: The diagnostic player has had a uniform run this month. The stock ended higher for the seventh straight day on Wednesday, after previously declining for a similar time period. Dealers are anticipating a large block deal in the stock in which a large private equity investor is likely to be the seller. Based on the company's June quarter shareholding patter, Foreign Investors held 22.4 percent stake in the company. Dr. Lal was in the news recently after
Credit Suisse initiated coverage with an Underperform rating with a potential downside of 45 percent. Asian Paints: The paints company was the top gainer on the Nifty 50 on Wednesday, ending 3 percent higher. The stock also gained for the third straight day and is trading near its 52-week high. Dealers suggest that the stock is surging on account of strong buy flows from the FII desks.
Indiabulls Real Estate: Shares of the real estate player ended lower for the fourth straight day after giving up gains during the final minutes of trading. Dealing rooms indicate that some buying flows are returning from the HNI desks and that all eyes are now on the next NCLT hearing on October 7, which if cleared,
would complete the merger between the company and Embassy will be completed.