Closing Bell: Sensex, Nifty end lower amid volatility; metal, realty shine, FMCG drags

Markets started the week on a muted note and ended almost unchanged, taking a breather after the recent surge. After the initial uptick, the Nifty index hovered in a narrow band and finally settled around the day’s low to close at 18,332 levels. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein metal, realty and IT posted decent gains. The broader indices also failed to attract much traction and ended flat to marginally in the green.

Though we’re just inches away from the record high, the absence of momentum is keeping the participants, especially traders, on their toes. Besides, the lack of broader participation is further adding to their worries. Amid all, we reiterate our view to focus on identifying the top performers from across sectors and utilise intermediate pauses & dips to add them gradually.

Markets exhibited sideways movement in a lacklustre trading session and ended lower as traders booked profit in select counters after the last week's robust upsurge. Lack of fresh positive triggers from the global front prompted investors to trim their holdings, but any uptick in crude oil prices & currency movement could fuel a fresh round of profit-taking.

On daily charts, the Nifty has formed a small bearish candle which is indicating indecisiveness between the bulls and bears. For the index, 18250 and 18200 would be key support zones, and above the same it could retest the level of 17390. Any further upside could lift the index up to 17500. Below 18200, any uptrend would be vulnerable.

The Nifty had crossed the level of 18300 in the penultimate session. On November 14, it witnessed a brief consolidation above this level. The hourly chart shows that a rising trendline drawn from the previous key swing highs acted as a resistance near 18400.

On the downside, the zone of 18300-18200 is now acting as a support as per the principle of role reversal.

It is crucial to observe whether the Nifty manages to sustain above this area in order to keep the upside trajectory intact. On the other hand, breach of this zone will drag the index again to 18000

Although there were favourable domestic indicators, the market was under pressure due to weakness in the US and other Asian markets. India's wholesale inflation dropped below forecasts, aided by a slowdown in the prices of manufactured goods and fuel & electricity.

The domestic CPI, which is anticipated to continue the trend, will boost confidence in the Indian market as it will lessen the risk indicators for the RBI to maintain its hawkish stance.

Indian rupee closed44 paise lower at 81.25 per dollar versus Friday's close of 80.81.

Benchmark indices ended in the red amid volatility on November 14.

At Close, the Sensex was down 170.89 points or 0.28% at 61,624.15, and the Nifty was down 20.50 points or 0.11% at 18,329.20. About 1662 shares have advanced, 1851 shares declined, and 141 shares are unchanged.

Hindalco Industries, Apollo Hospitals, Tata Motors, Grasim Industries and Kotak Mahindra Bank were among the top Nifty gainers, while losers were Dr Reddy's Laboratories, ITC, Coal India, HUL and SBI.

Among sectors, realty and metal index up 1 percent each, while FMCG index down 1 percent

The BSE midcap and smallcap indices ended flat.

-Upgrade to buy, target at Rs 177 per share
-Q2 below estimates, staff costs offset sequential gross margin expansion
-Optimistic on further growth in CV demand
-Increase FY23/24 EBITDA estimates by 9-37%, reported CNBC-TV18.

Ashok Leyland was quoting at Rs 152.75, up Rs 5.05, or 3.42 percent on the BSE.

The worst may be over for Indian oil marketing companies (OMCs) including India Oil, Bharat Petroleum, and Hindustan Petroleum, after a significant debt increase in the second quarter of the current financial year on marketing losses, a depreciating rupee and high working-capital needs, according to Fitch Ratings.

The credit rating agency expects the marketing segment to turn profitable from FY24. The retail losses from auto fuel prices that have been frozen for around six months amid elevated crude oil prices kept the OMCs’ profitability under pressure in 2QFY23, said Fitch in its report.

Pharma stocks slip on concerns over first anti-competitive US lawsuit against ‘Revlimid’ makers

Pharma stocks like Natco Pharma, Cipla, and Dr Reddy’s Laboratories clocked some losses in the range of 1-4 percent in trade on November 14 after a Macquarie note suggested that an anti-competitive lawsuit being filed against anti-cancer and anti-myeloma drug Revlimid’s makers will open up a Pandora’s Box for other lawsuits.

Walgreens and Kroger Specialty Pharmacy filed a civil antitrust lawsuit against Celgene Corp, Bristol-Meyers Squibb (BMS), Natco Pharma, and Teva Pharmaceuticals regarding anti-cancer and anti-myeloma drug Revlimid, according to Macquire’s note on November 14, 2022. The answers from the defendants concerning the current lawsuit are due on January, 2023. Read More