Closing Bell: Sensex, Nifty end lower; metal, realty, banks under pressure

Taking Stock: Market Narrows Losses But Closes In The Red Again; PSU Bank, Metal, Realty Drag

Among sectors, Nifty metal and PSU bank indices fell 1-2 percent, while buying was seen in auto, energy, infra and pharma names... Read More

Markets remained volatile and ended marginally lower, in continuation to the prevailing trend. Weak global cues triggered a gap-down start however recovery in the select index majors trimmed the losses as the session progressed. A mixed trend was witnessed on the sectoral front and the broader indices also slipped marginally in the red after the recent surge.

We are seeing mixed signals at present. At one end, participants are cautious due to continuous foreign outflow and mixed earnings announcements. On the other hand, improvement in the macro environment, improving demand and reopening of the economy is signalling positivity. All these factors put together are triggering volatile swings in the market. And, we expect choppiness to remain high due to the scheduled weekly expiry on Thursday. Participants should maintain extra caution in the selection of stocks and focus more on risk management.

Markets languished in the negative territory for a major part of the session as Asian cues were mixed. After the initial intraday selloff, Nifty found support near 17,900 and reversed sharply in the closing hours.

Technically, the narrow range activity near the 20 day SMA clearly indicates indecisiveness between the bulls and bears. However, the intraday texture is still bullish and is likely to continue in the near future.

The intraday trading set up suggests 17,950 would be the key support level for the traders. Trading above the same, the index can move up to 18,100-18,150 levels. On the flip side, dismissal of 17,950 may trigger short-term correction up to 17,850-17,825 levels.

The Nifty continues to trade in a range bound manner for yet another session. In the beginning of the session the index breached its key hourly moving averages. However, there was no follow through selling. The index received buying support as it moved near a rising trendline on the hourly chart.

Thereon the index managed to recover & climbed above the hourly averages & 18,000 mark however stumbled near 61.8% retracement of the previous fall.

The daily chart shows that the Nifty is witnessing oscillations between the key daily moving averages. The range breakout on the upside will be considered once the index crosses the swing high of 18,112. On the other hand, 17,900-17,920 will act as a near term support zone.

The index was unable to get past the 18,100 level which is the critical juncture at this point in time. If the Nifty can keep above 18100 for a couple of sessions, we can move up to 18,400 and then 18,600 as targets 1 and 2 respectively.

17,700-17,800 has become the new support for the markets.

Nifty has been in a consolidation phase since the past few trading sessions. Broader market health has improved with midcap participation and now we expect the uptrend to resume for 18,700-19,000 on the higher side.

Any corrective dips should be bought into as the trend remains positive. IT, Metals, and select FMCG stocks look attractive at current levels.

Indian Benchmark Indices ended lower today. Nifty 50 declined 0.15% and Sensex declined 0.12% today. Good buying was seen in Oil & Gas and Auto stocks while some selling pressure was seen in Metal and Realty stocks.

On the technical front 17,700 and 18,300 are near term support and resistance in Nifty 50 respectively.

On the back of negative global cues and SGX Nifty, the index opened down, but it recovered 145 points from the day low and filled the gap and made an intraday high at 18060.95 and settling at 18,017.20 with a marginal loss of 27 points while Bank Nifty settled at 39,023.25 with a loss of 45.55 points.

Technically, Nifty has just settled above the Pivot Point indicating a bounce-back movement in the counter. The Swing Index and theMomentum indicator have come out of their negative zones on the four-hourly time frame into the positive zones indicating an uptrend.

Also, the stochastic indicator is witnessed with a positive crossover. At present, the index has a support level of 17,850 and resistance of 18,130 levels.

Market sentiment has been somewhat weaker with respect to institutional flows over the last week – FIIs have been net sellers worth Rs 4000 crore in cash segment and Rs 2500 crore in stock futures in Nov so far. Retail long leverage through stock futures continues to be very strong – net long open interest is up to $14 bn, which is a life high.

Exuberant participation in primary issuances and high leverage, combined with peaking of earnings upgrade cycle, poses a major risk in the near-term for broader markets.

Auto sector has been benefiting from cooling off of metals prices, which have acted a headwind to margins, as well as a cut in fuel excise duties. Pharma sector faces price erosion headwinds in US market and can be a likely under-performer going ahead.

Broadly, domestic market continued to trade negative after a disappointing opening as inflation worries affected the global markets. However, the market trend was mixed on stock to stock basis.

China’s CPI rose 1.5% YoY, while the producer price index rose by 13.5% YoY owing to imported inflation and domestic supply shortages.

Globally investors are awaiting the release of the US inflation data due later today, which is expected to continue at peak levels.

The market witnessed some positive movements after the negative start and an attempt to hold the Nifty 50 Index level of 18,000.

Sustaining above 18,000 will be an important level for the market to stay positive in the short term. If the market is able to sustain the said level, it can witness a positive momentum in the market which can lead to the higher levels near 18,250. The momentum indicators like RSI and MACD indicating positive momentum in the market.

Benchmark indices ended lower for the second consecutive session on November 10 amid selling seen in the metal, realty, banking names.

At Close, the Sensex was down 80.63 points or 0.13% at 60,352.82, and the Nifty was down 27.10 points or 0.15% at 18,017.20. About 1601 shares have advanced, 1530 shares declined, and 129 shares are unchanged.

IndusInd Bank, Hindalco Industries, Tata Steel, Coal India and JSW Steel were among the major Nifty losers, while gainers were UPL, Bharti Airtel, M&M, Britannia Industries and Sun Pharma.

Among sectors, PSU Bank, Realty and Metal indices down 1-2 percent, while buying was seen in the auto, pharma and oil & gas names. The BSE midcap index shed 0.5 percent and smallcap index ended on flat note.

The initial public offering of Sapphire Foods, which operates KFC and Pizza Hut restaurants, received bids for 83.07 lakh equity shares against an IPO size of 96.63 lakh equity shares, a subscription of 86 percent on November 10, the second day of bidding.

Retail investors remained at the forefront, subscribing 4.38 times the portion reserved for them. Qualified institutional investors have, so far, bid for only 2 percent of their quota of shares, while non-institutional investors bought 20 percent shares of their portion.