After a volatile day, benchmark indices closed with cuts on November 24, extending the losing run to the second session. IT stocks were among the biggest drags while buying was seen in pharma and metal stocks.
The headline indices have been trading in a range for a while now in the want of any significant trigger. Smallcap stocks maintained their outperformance for another session.
The Sensex ended down 47.77 points or 0.07 percent at 65,970.04, and the Nifty slipped 7.30 points or 0.04 percent at 19,794.70. Market breadth favoured losers. About 1,721 shares advanced, 1,849 shares declined, and 114 shares were unchanged.
“It is a healthy consolidation in the Nifty so far and we feel only a decisive gap-up move above 19,850 could pave the way for a new high else range bound bias would continue,” said Ajit Mishra, SVP - Technical Research, Religare Broking. “Participants should keep a close watch on the US markets and the performance of the banking majors for cues. Meanwhile, stay selective and avoid contrarian trades.”
Stocks and sectors
Broader market indices ended mixed. Nifty Smallcap 100 gained 0.30 percent while Nifty Midcap 100 rose 0.06 percent. Nifty 500, the broadest index on NSE, rose 0.02 percent.
Nifty IT was the biggest loser, down 0.97 percent, followed by Nifty FMCG and Nifty PSU Bank. Nifty Pharma was the top gainer, rising 0.87 percent, followed by Nifty Metal and Nifty Healthcare.
Among Nifty 50 stocks, Adani Enterprises was the top gainer, up 3.44 percent. Cipla, Divi’s Labs, Hindalco Industries and Adani Ports were other top gainers. Wipro, TCS, HCLTech and Apollo Hospitals were top losers of the day losing up to 2 percent.
OUTLOOK for Nov 28
Rupak De, Senior Technical analyst at LKP Securities
The Nifty has encountered difficulty surpassing the resistance range of 19850-19900. On the downside, 19700 has held as a near-term support level. As long as there's no breakout, the index is expected to continue moving sideways. A decline below 19700 could potentially trigger a market correction. Conversely, a clear move above 19900 might prompt a significant rally, potentially driving the index towards a new all-time high.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
A small negative candle was formed on the daily chart with minor upper and lower shadows. This market action reflects sideways range movement for the Nifty, which is unfolding over the last 5-6 sessions. This is signaling that the market is waiting for the triggers to break beyond the range of 19875-19650 levels.
The near-term uptrend status of Nifty remains intact. The cues of recent assembly elections (exit poll predictions on 30th Nov and election result on 3rd Dec) are expected to be a trend decider for the market ahead. The upcoming above-said event is likely to trigger sharp movement on either side of the range. A sustainable up move above 19,900 could pull Nifty towards all-time highs and a decisive move below 19,600 is likely to open a near-term downward correction for the market.
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