Taking Stock: Market recovers from day's low but losses extend on second day

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Biggest Nifty losers were Asian Paints, Tech Mahindra, Tata Steel, Dr Reddy's Laboratories, Interglobe Aviation, while gainers included Titan Company, Shriram Finance, Adani Enterprises, Eternal, Bharat Electronics.

Among sectors, IT, auto, metal down 0.3-1 percent, while realty, telecom, capital goods, PSU Bank up 0.5-1 percent.

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In stock-specific action, Fujiyama Power Systems shares added 1% as Q2 profit jumps 97%, Physicswallah shares fell 2% despite Q2 consolidated profit rises 69%, Siemens shares shed 2% on sale of Low Voltage Motors and Geared Motors businesses, VTM shares fell nearly 5% on signing MoU with Government of Tamil Nadu, SpiceJet share price rose 6% on adding 2 Boeing 737 Aircraft, Ajmera Realty shares added 4% on recording 81% sell at residential project, Solarworld Energy Solutions share price added 2% on project win of Rs 806 crore.

Also Read - Rating disconnect widens as investors outpace analysts in Nifty 50 moves

More than 500 stocks hit 52-week low, including Balrampur Chini Mills, Tata Chemicals, Mahanagar Gas, United Breweries, Sapphire Foods, Piramal Pharma, Blue Dart, Aarti Industries, ACC, Chambal Fertilisers, Tejas Networks, Inox Wind, Page Industries, Power Finance, NCC, Trent, REC, BASF, among others. Click to View More

Outlook for December 10

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty slipped in the opening hour before finding support around the 61.80% Fibonacci retracement level of the previous rise. It is also observed that the 61.80% retracement level coincides with the 50EMA, indicating the strength of the support zone.

However, the short-term sentiment might remain weak as the index is sustaining below the 21EMA.

The RSI is in a bearish crossover, adding to the weak momentum.

In the short term, the trend may remain weak with a possible decline towards 25,615/25,535. Resistance is placed at 25,970–26,000.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

On the weekly expiry day, the benchmark index Nifty opened with a sharp gap-down and extended losses during the initial hour of trade, reflecting heightened volatility. However, the index managed to find support near its 50-day EMA, which triggered a recovery and helped recoup part of the early losses. This price action resulted in the formation of a High Wave candle on the daily chart, signalling indecisiveness and a lack of clear directional bias in the market.

Among the Nifty constituents, Eternal and Titan emerged as the top gainers, while Asian Paints and Tech Mahindra were among the major laggards. Sectoral performance was mixed, with Nifty Consumer Durables, Nifty PSU Bank, and Nifty Chemicals leading the gains, whereas Nifty IT and Nifty Auto ended as top losers.

A notable highlight of the session was the outperformance of the broader market after several muted days. The Nifty Midcap 100 closed higher by 0.32%, while the Nifty Smallcap 100 staged a strong rebound from oversold levels, ending up 1.14%. Market breadth improved significantly, with the advance-decline ratio tilting in favour of advancers. From the Nifty 500 universe, 323 stocks finished on a positive note, indicating improving sentiment across the broader market.

Going ahead, for Nifty, the zone of 25730-25700 will act as important support. If the index slips below the 25,700 level, it could trigger a deeper correction. On the upside, the zone of 25,950-26,000 will act as a crucial hurdle for the index. Any sustainable move above the 26000 will lead to an upside rally up to the 26,150 level.

The banking benchmark index, Bank Nifty, slipped below its 20-day EMA at the opening but managed to close the session above this key level. On the daily chart, it has formed a bullish candle with a minor upper shadow, indicating some buying interest despite early weakness. Going ahead, the zone of 58,900-58,800 will act as crucial support for the index. While on the upside, the zone of 59,600-59,700 will act as an important hurdle.

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