Closing Bell: Nifty ends below 17,200, Sensex falls 765 points; FMCG, auto, pharma, banks drag

Taking Stock | Market Snaps 2-day Winning Streak; Sensex Falls 765 Points, Nifty Below 17,200

Over 150 stocks, including Tech Mahindra, Vodafone Idea, HBL Power, hit a 52-week high on the BSE.... Read More

After 2 days of a relief rally, selling resumed as mixed cues in other Asian markets weighed on sentiment that prompted investors to trim their holdings in auto, FMCG and IT stocks. While Nifty corrected sharply, it finally took support near 16750. In an extremely volatile week, the Nifty succeeded to close above the 100 day SMA which is broadly positive. However, on the dismissal of 17140, the market could again enter in the short term bearish zone and below the same, the index could gradually fall to 16880/16780 levels.

Based on the daily chart the market is forming the series of a lower top lower bottom. In case the market breaks 16780 then it would have major implications and in that case the possibility of the index hitting 16500 would turn bright. Meanwhile, on daily charts, the Bank Nifty maintained a lower top formation which is largely negative. Now, 35500 or 200 day SMA would be the key support level. And the texture of the chart suggests a strong possibility of axquick pullback rally if it succeeds to trade above 35500.

Markets failed to extend the rebound and lost nearly a percent citing caution due to the COVID variant. Initially, the benchmark opened with an uptick tracking supportive global cues however selling pressure at higher levels dragged the indices lower as the day progressed. Nifty finally settled around the day’s low to close at 17,196.70 levels.

The broader markets outperformed wherein midcap ended flat and smallcap indices ended higher by 0.4%. Amongst the sectors, all the other indices, except capital goods, ended in the red wherein banking, oil & gas and auto were the top losers.

We’re seeing a roller coaster ride in markets across the globe due to the news flow around the new COVID variant and we don’t expect any relief soon. Participants have no option but to align their position accordingly and prefer hedged positions. Investors should not worry much about these fluctuations and use the further dip to add quality stocks in a staggered manner.

This week omicron woes kept the USDINR spot afloat, and now the focus is on tonight’s US non-farm payrolls report. It is a big data to digest before the Fed policy as it will help gauge the state of US employment and will carry some implication on this policy outcome.

A big NFP figure will push USDINR higher along with the safe-haven demand if Omicron concerns rise. But next week, we have RBI policy and a likely tightening by raising the reverse repo rate may limit any rise in USDINR spot. So we expect USDINR spot to continue oscillating in between 74.70-75.50. As long as it trades above 74.70, it will continue the uptrend.

Index closed a week at 17197 with gains of more than one percent and formed a doji sort of candle pattern on weekly chart after two bearish candles which hint indecision in the markets.

Good demand zone for Nifty is already formed near 17100-17000 zone & holding above said levels one can expect index to march towards 17500-17600 zone in near term but if failed to hold then more profit booking can push index to much lower levels, immediate hurdle is coming near 17300-17440 zone.

On the last day of the week, after a gap-up opening, the index didn’t manage to sustain at a higher level and showed profit booking and closed the session at 17196.70 levels with a loss of 204.95 points.

On the technical front, the index has formed an open bearish Marabozu candle which points out a weakness for the next trading sessions. Moreover, the index has taken support from 100 DMA which points out sustained above the show upside momentum. Furthermore, the index has taken support from the rising trend line as well as the index has been trading with higher highs & lower lows from the last 3 trading sessions which points out bullish movement intact.

At present, the index has support at 17000 levels while resistance comes at 17500 levels. On the other hand, Bank Nifty has support at 35300 levels while resistance at 37000 levels.

Following a positive opening, benchmark indices gave up all gains led by losses in heavyweights in anticipation of the RBI meet next week. Meanwhile, investors were also cautious after India reported Omicron cases.

However, global equities traded with slight gains recovering from yesterday’s broad based sell-off led by fears on new covid variant and Fed chair’s comment on the bond-buying program.

RBI’s monetary policy meeting will be a key market driver as investors await MPC’s policy decision which is broadly expected to hold an accommodative stance considering the uncertainty surrounding the new variant.

The Nifty failed to keep above the 17400-17500 zone which is a bearish signal. We are resisting at higher levels and therefore the upside is definitely capped in that region.

Unless we do not get past the patch of 17400-17500 on a closing basis, we won't really see a meaningful upside rally. If the markets were to break 17100 next week it would be a matter of concern as there is every possibility we re-enter the current bear trend.

: Benchmark indices broke the two-day winning streak and ended lower with Sensex closing below 58,000 mark.

At Close, the Sensex was down 764.83 points or 1.31% at 57,696.46, and the Nifty was down 205 points or 1.18% at 17,196.70. About 1722 shares have advanced, 1453 shares declined, and 137 shares are unchanged.

Power Grid Corporation, Reliance Industries, Tech Mahindra, Asian Paints and Kotak Mahindra Bank were among the major Nifty losers. The gainers included UPL, BPCL, ONGC, IOC and L&T.

Except capital goods, all other sectoral indices ended in the red. BSE midcap and smallcap indices ended on flat note.

Star Health IPO Share Allotment | Check Latest Grey Market Premium, Listing Date

The offer comprised fresh issue of Rs 2,000 crore, and an offer for sale of Rs 5,249 crore, which will get reduced to the extent of undersubscription, by selling shareholders, including Safecrop Investments India LLP. The issue price could get finalised at the upper price band of Rs 900 a share.... Read More

Maruti Suzuki's share price was down over a percent in the afternoon trade on December 3 after CLSA downgraded the stock to “sell” from “underperform” and cut the target to Rs 6,420 from Rs 6,550 a share.

The brokerage firm said that if the company loses share in the SUV segment, it may lose 600 Bps market share in the passenger vehicle segment over FY20-22.

The board of directors of Punjab Alkalies and Chemicals in its meeting held on 02.12.2021 considered and approved the sub-division of each equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each subject to the approval of shareholders.

It has touched a 52-week high of Rs 229.95 and was quoting at Rs 217, down Rs 1.95, or 0.89 percent.