After seeing a muted start, benchmark indices Nifty 50 and Sensex staged a smart rally in the afternoon session of November 13. However, the indices failed to sustain the gains, and settled flat, with a minor positive bias.
At close, on its weekly expiry, Sensex was up 12.16 points or 0.01 percent at 84,478.67. The Nifty broke past the 26,000 mark but the bears continued to hammer the index, leading it to settle at 25,879.15, higher by 3.35 points or 0.01 percent.
Sectoral performance was mixed on Thursday, with buying seen in select pockets while others faced mild pressure. Gains were led by Nifty Realty and Nifty Pharma, which advanced 0.53 percent and 0.51 percent, respectively, followed by Nifty Financial Services and Healthcare, both up around 0.2 percent. Private Bank stocks also edged higher.
On the other hand, PSU Bank, Media, FMCG, IT, and Auto indices saw declines in the range of 0.3 to 0.6 percent, with PSU banks emerging as the top laggards. Oil & Gas and Consumer Durables also slipped marginally, reflecting a broadly range-bound market tone across sectors.
India's retail inflation fell to a record low of 0.25 percent in October, marking the lowest reading since the current series began in 2013. Experts were hopeful of another rate cut in the benchmark lending rate from the Reserve Bank of India in its December meeting.
According to experts, the market needs more triggers to take it to new record highs. With the outcome of the Bihar polls largely discounted by the market, there are no political triggers that can push the market significantly higher. The reverse might happen if the actual poll results turn out to be different from the exit polls.
"The important economic factors that have to be watched for is a possible India-US trade deal removing the penal tariffs and reducing the reciprocal tariffs. The decline in October retail inflation in India to 0.25 percent indicates the possibility of a rate cut from the MPC in December. But the monetary policy transmission turning weak has become a challenge for the RBI," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
From a technical perspective, Nifty is comfortably trading above its 10- and 20-day exponential moving averages (DEMA), turning previous resistance zones into fresh support levels. "As long as the index sustains above the 25,700–25,650 zone, traders are expected to adopt a buy-on-dips strategy," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
On the upside, he added that immediate resistance is placed near 25,950. A convincing move beyond this level could trigger fresh buying and extend the rally further. Conversely, a break below 25,650, in wake of negative surprise in Bihar Polls outcome would signal weakness and may invite renewed caution among traders.
Follow our market blog to catch all the live updates
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
