Closing Bell: Sensex, Nifty end marginally lower; autos drag, PSU banks shine

"Turnaround businesses as the best investment ideas to create wealth. Companies that haven't been doing well for past few years but due to some fundamental or structural change, are expected to start performing well; those are the turnaround companies one should look at," Mehta said at the PMSBazaar's Alternative Investment Summit.

Domestic market is now focusing on global trend for future direction due to lack of domestic triggers. Negative vibes in developed market and aggressive comment from Fed officials have shaken the ongoing optimistic trend across the globe. Despite a late attempt of recovery, the domestic market largely traded with a negative shade, in all sectors except PSU banks.

The Bank Nift index witnessed a volatile trading session where the first half was controlled by the bears and in the closing hours, bulls came back to hold the support. The bulls in order to gain back the momentum will have to take the index above 42,600-42,700 levels from where the uptrend will resume.

The bears will watch for 42,000 on the downside if breached and will get an upper hand on the index which will drag it further down toward the 41,500 level.

Markets traded volatile and ended marginally lower, in continuation to the prevailing consolidation phase. After the flat start, the Nifty index gradually inched lower as the session progressed however recovery in the final hours pared the losses significantly. It finally settled at 18307 levels; down by 0.2%.

All the sectoral indices, barring PSU banking, traded in tandem and ended lower.

Markets are indicating the prevailing consolidation to continue and Nifty should decisively cross 18,450 levels to regain strength. Meanwhile, we reiterate our view to focus more on sector/stock selection citing restricted participation. Besides, we’re observing breakout failures across sectors, so maintain strict risk management rules also in place.

The Nifty witnessed muted action in the week gone by & ultimately posted a negative weekly close after four consecutive positive weeks.

The short term momentum indicators have been showing negative divergence, which is a sign of weakness & the price action is expected to follow the suit.

Going ahead, the Nifty is expected to tumble towards 18100-18000 in the short term. On the higher side, 18450 has been acting as a resistance for the index & will continue to act as a cap for the short term.

The broader end of the market is expected to see deeper cut in the short term.

Indian rupee closed marginally lower at 81.68 per dollar against previous close of 81.64.

Indian benchmark indices ended lower in the volatile session on November 18.

At Close, the Sensex was down 87.12 points or 0.14% at 61,663.48, and the Nifty was down 36.20 points or 0.20% at 18,307.70. About 1424 shares have advanced, 1966 shares declined, and 119 shares are unchanged.

HCL Technologies, HUL, Asian Paints, SBI and Kotak Mahindra Bank were among the top Nifty gainers, while the biggest losers were M&M, Bajaj Auto, Cipla, IndusInd Bank and Maruti Suzuki.

Except Realty and PSU Bank, all other sectoral indices ended in the red.

The BSE midcap and the smallcap indices down 0.4 percent.

Anil Rego, Founder and CEO, Right Horizons said even while one is multiplying their money, they need to manage their risk well. The art of multiplying wealth is looking at stocks, their potential growth among other factors, he added at PMSBazaar's Alternative Investment Summit.

Surjit Singh Arora, Portfolio Manager and Principal Officer at PGIM India PMS, believes industrials will do well going ahead. Besides industrials, Arora also likes retail and automobile companies considering the consumption is improving.

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Exide Industries touched a 52-week high of Rs 188 and quoting at Rs 184.45, down Rs 2.25, or 1.21 percent.