Closing Bell: Nifty below 17,000, Sensex tanks 949 points; auto, IT, pharma hammered

Taking Stock | Omicron Cases Spook Investors; Sensex Plunges 949 Points, Nifty Ends Below 17,000

Except UPL, all Nifty50 stocks ended in the red. Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top losers... Read More

Markets plunged sharply lower and lost over one and a half percent, in continuation to Friday’s fall. After the flat start, weak global cues and updates on the new COVID variant started weighing on the sentiment as the day progressed. Consequently, the Nifty ended near day’s low to close at 16,912.25 levels. The sectoral indices traded in tandem and mostly ended in the red wherein IT, auto, FMCG and pharma were among the top losers.

The rise in COVID cases has again started haunting the global markets and the situation may deteriorate further in near future. Besides, the upcoming MPC’s policy review outcome and macroeconomic data (IIP and CPI inflation) would keep the volatility high. Keeping in mind the scenario, we reiterate a cautious stance and suggest continuing with a hedged approach.

Nifty is continuing its corrections after a minor pullback where it has again slipped below its 100-DMA. The selling can be attributed to rising cases of omicron variant in India along with other countries whereas FIIs are also continuing to hold their hand on the sell button. There was a sharp selling on Tech stocks in the USA in Friday's trading session and the same was replicated in our market where the Nifty IT index ended with a cut of 2.7%, however there was broad-based selling because there was no sectorial index that ended on a positive note. The market may continue to remain volatile amid news flow related to the omicron variant.

Technically, 16800-16700 is a critical support zone for the Nifty where we can expect a bounceback while below this zone, 16400 will be the next important support level. On the upside, 17000 will act as an immediate intraday resistance for tomorrow while 100-DMA of 17181 will be the next hurdle; above 100-DMA, we can expect a short covering move towards the 17300-17350 zone.

Bank Nifty still manages to close above its 200-DMA that is currently placed at 35700 level. If it starts to trade below this level then we can expect further weakness towards the 35000 level otherwise it may witness a bounceback. On the upside, 36000 will be immediate and intraday resistance while 36500/37000 will be the next resistance levels.

There was no respite for the markets as investors continued to dump stocks at will due to uncertainty over the current threat of the omicron variant of coronavirus. Weakness in other Asian markets also further worsened the sentiment.

After last Friday's sharp fall, the Nifty quickly broke the 17100 support level. The index has formed a long bearish candle and closed below the 17000 mark which is broadly negative for the market. However, on intraday charts, the market looks extremely oversold and as long as the Nifty doesn't breach the 17000 intraday breakout level, the weak wave could remain intact.

For day traders, the texture is volatile and weak and 17000 could act as a trend decider level. Below the same, the correction wave will continue up to 16850-16800 levels.

On the flip side, above 17000 intraday breakout, a pullback rally could move the index up to 17085-17125 levels. Contra traders can take a long bet near 16800 with a strict 16750 support stop loss.

Ambiguity surrounding Omicron continued to dent the morale of domestic investors ahead of the important RBI policy announcement on Wednesday. The domestic market is expected to be volatile as the near-term will be dominated by developments on new variant and, RBI and FED policy decisions.

Market expects RBI to hold-on to the accommodative policy considering short-term uncertainties. However, a change is expected during H1 2022, which Indian market is factoring while global equities are trading mixed.

Benchmark Indices closed lower today with Nifty and Sensex falling more than -1.6% each today with nifty closing below 17000 levels. Key benchmark indices have extended losses and registered fresh intra-day lows with major weakness witnessed in IT and FMCG stocks.

On the Economy front, investors would be eyeing the RBI MPC Meeting and data of Index of Industrial Productions (IIP) which is set to be released on 8th & 10th December.

On the technical front, markets are trading around crucial support zone ~16800-850 levels and if it does not sustain above this level then we might see some volatility in the coming days . Immediate support and resistance for Nifty 50 is 16800 and 17250 and for Bank Nifty is 35350 and 36500, respectively.

Indices started the day weak and selling intensified during afternoon trade with almost all sectoral indices ending in the red. As the street awaits the RBI stance on interest rates, the Nifty sold off below 17K today as Bears held upper hand on a day which saw no recovery.

FII selling continued with no respite despite accumulation seen today in high quality financials by local investors.

The markets continued its downward trajectory and has threatened the 16900 level. The index is heading towards the recent low of 16750-16780. If we break that, the Nifty can fall to 16400-16450.

: Market ended lower for the second consecutive day on December 6 with Nifty closing below 17,000 amid rising concern over Omicron variant.

At Close, the Sensex was down 949.32 points or 1.65% at 56,747.14, and the Nifty was down 284.40 points or 1.65% at 16,912.30. About 1340 shares have advanced, 1948 shares declined, and 165 shares are unchanged.

Except UPL, all other stocks under Nifty50 ended in the red with Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top Nifty losers.

Market Close: Market ended lower for the second consecutive day on December 6 with Nifty closing below 17,000 amid rising concern over Omicron variant.

At Close, the Sensex was down 949.32 points or 1.65% at 56,747.14, and the Nifty was down 284.40 points or 1.65% at 16,912.30. About 1340 shares have advanced, 1948 shares declined, and 165 shares are unchanged.

Except UPL, all other stocks under Nifty50 ended in the red with Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top Nifty losers.

Among sectors, IT index fell over 2 percent, while other sectors lost a percent each. The BSE midcap and smallcap indices fell over 1 percent each.

Oil rose by more than $1 a barrel to above $71 on Monday as hopes that the Omicron coronavirus variant may cause mostly mild symptoms boosted riskier assets and as the prospect of an imminent rise in Iranian oil exports looked less likely.

Helping ease Omicron concerns, reports in South Africa said cases there only had mild symptoms and the top U.S. infectious disease official told CNN "it does not look like there's a great degree of severity" so far.

Brent crude gained $1.77, or 2.5%, to $71.65 by 0920 GMT while U.S. West Texas Intermediate crude advanced $1.69, or 2.6%, to $67.95. Both benchmarks declined for a sixth week in a row last week.

Tata Motors JLR UK sales declined 35.2% at 4,097 units versus 6,326 units, YoY.

Tata Motors was quoting at Rs 468.45, down Rs 11.55, or 2.41 percent.