Closing Bell: Nifty ends below 13,500, Sensex falls 143 pts; FMCG stocks outshine

Taking Stock | Profit-booking Ends 7-day Winning Streak But FMCG Stocks Gain

More than 200 stocks, including Sintex Industries, MBL Infrastructures and GMR Infrastructure, hit a 52-week high on the BSE.... Read More

Markets ended marginally lower in a range-bound session, taking a breather after the recent surge. Weak global cues led to a gap down opening in the benchmark which further inched lower on the back of profit-taking by the participants. However, resilience in FMCG majors capped the downside and recovery in metal and banking majors in the last hour further trimmed the losses. Finally, the Nifty index ended lower by 0.4% at 13,478 levels. The broader markets too ended with losses in the range of 0.6-0.7%.

Indications are in the favour of some consolidation in the index and it would be healthy for the markets. Nifty has critical support at 13,350 and its breakdown may result in further correction ahead. In the case of a rebound, the 13,550-13,600 zone would act as a hurdle. Defensive viz. FMCG, IT and pharma tend to do well during the corrective phase but traders should maintain caution in the selection of the stocks as we’re seeing selective participation.

After five days of bullish rally, the domestic market reversed along with Asian peers, backed by weak global markets, triggering profit booking across major sectors. PSU Banks, small and midcaps which were so positive recently were also under bearish attack. European indices are trading positive ahead of monetary policy announcement by European central bank and UK & EU having decided to finalise the Brexit deal by this Sunday.

A sell-off was seen in the US tech stocks which led to a correction in the US market as the stimulus package talks dragged. Markets being at the highest level, any unfavourable events, domestic or global, can result in temporary profit booking. However, we believe that the market is optimistic enough to continue the rally post a required consolidation.

After resisting at higher levels, the Nifty took a breather and came down to the lower end of the range which is 13400 but was quick to recover and close above the 13450 level. This rangebound movement between 13400-13700 may continue for a couple of sessions before the market decides on its new course of action and the direction it wishes to pursue. Traders are advised caution; we need to approach this resistance zone meticulously.

The market failed to show resilience to stay above the Nifty 50 Index level of 13480-13500. While it is subject to further price action evolution, our research suggests the technical factors are aligned to support a range between 13290 and 13480. Therefore, we advise the short-term traders to use any short-term rally to exit while attempting to buy on dip approach to adopt.

The market breadth to deteriorate, indicating the likelihood of higher volatility in the market. Any downwards corrective wave should find buying interest around 13290-13300.

: Benchmark indices witnessed profit booking on December 10 with Nifty below 13,500 dragged by the PSU Bank, auto and Infra stocks.

At close, the Sensex was down 143.62 points or 0.31% at 45959.88, and the Nifty was down 50.80 points or 0.38% at 13478.30. About 1209 shares have advanced, 1642 shares declined, and 158 shares are unchanged.

UPL, UltraTech Cement, Shree Cements, Tata Motors and M&M were among major losers on the Nifty, while gainers were Nestle, ITC, Britannia Industries, HUL and Adani Ports.

Except FMCG and Metal other sectoral indices ended lower. BSE Midcap and Smallcap indices shed 0.5 percent each.

S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-UStensions.

Oil rose above $49 a barrel on Thursday as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed supply remains ample.

Snowman Logistics stock up by 4.14% on announcement of signing Memorandum of Understanding with Spicejet Ltd for jointly distributing COVID-19 Vaccines. Company has announced that Snowman Logistics Limited and SpiceJet have signed a MOU for jointly engaging in storage, transportation, and distribution of COVID-19 vaccines from various manufacturers, across India and internationally, in the required temperature-controlled zones.

As per the understanding, Snowman will handle the ground services which includes activities such as transportation to/from manufacturers, warehouses, airports and consumption points, packing, storage & warehousing, in the required temperature zones, while SpiceJet will provide the air connectivity for temperature controlled distribution of the COVID-19 vaccines across India as well as internationally. This is a very positive development for Snowman Logistics this is very significant for snowman logistics.

The Dubai Gold and Commodities Exchange (DGCX), has selected Cigniti Technologies – a global leader in independent quality engineering and software testing services – as its strategic Quality Assurance service provider as the Exchange seeks to upgrade its technology platform.

CLSA has maintained buy call and raised target to Rs 255 from Rs 205 per share.

According to broking house, the visibility improves for residential growth and it has a slew of new launches planned over next 2-3 years.

The company expects to generate strong FCF of Rs 1,000 crore in FY22 & Rs 1,500 crore in FY23. The major part of FCF will be utilised to lower its debt

Broking house increase its presales & earnings estimates for FY21-FY23 and expect presales to reach Rs 4,200 crore in FY23 from Rs 2,500 crore in FY20, reported CNBC-TV18.

SeQuent Scientific announced launch of Citramox LA 150 mg/ml Suspension Injection for Cattle and Pigs in 10 European countries, including the key markets of Western Europe. The product has recently received approval through its Spanish subsidiary Laboratorios Karizoo, S.A., and will be the first Long-Acting injectable to be offered by SeQuent in Europe.