Key indices the Sensex and the Nifty snapped the winning run of the last three consecutive sessions and ended deep in the red on November 25, as heavy sell-off engulfed the Indian market amid mixed global cues.
After a positive start, the Indian market failed to hold altitude and fell prey to profit-taking near record-high levels ahead of the expiry of the November F&O series. The rising COVID-19 cases and talk of partial lockdowns in some parts of the country kept investors on the edge.
At close, the Sensex was 694.92 points, or 1.56 percent, down at 43,828.10 and Nifty slipped 196.75 points, or 1.51 percent, to 12,858.40.
The BSE Midcap index closed with a loss of 1.76 percent and the smallcap index settled 1.13 percent lower.
Among the sectoral indices, realty, bankex and telecom lost 2 percent each. BSE oil & gas ended 0.08 up, thanks to a stellar show by ONGC that rose over 6 percent. All other sectoral indices ended in the red.
"The market rally which was led by developments on vaccine and FII inflows came to a halt today due to profit-booking across sectors in the second half of the trading session," said Vinod Nair, Head of Research at Geojit Financial Services. Profit booking was expected to continue in the short term, as the liquidity-driven rally can take a pause having reached an all-time high on a monthly basis.
"FII inflow was triggered by the overwhelming result of the US election unleashing high amounts of funds which that put on hold. FIIs can take a breather and check for the next phase of policies in the US and Europe for 2021," Nair added.
The strong selloff eroded the market capitalisation (m-cap) of BSE-listed firms. Investors lost about 2.2 lakh crore in a single day as the cumulative m-cap of BSE-listed firms dropped to Rs 172.6 lakh crore on November 25 from 174.82 lakh crore on November 24.
Top Nifty gainers: ONGC, GAIL, Adani Ports
Top Nifty losers: Eicher Motors, Axis Bank, Kotak Mahindra Bank
Stocks & sectors
Barring the nominal gain in BSE Oil & Gas (up 0.08 percent), all indices ended in the red, with bank, pharma, realty, auto and telecom losing the most.
On the NSE, the Nifty PSU Bank index bucked the trend to rise 1.80 percent.
Despite the strong selloff, more than 160 stocks hit a fresh 52-week high and over 300 stocks hit their upper circuit on BSE.
On the other hand, nearly 40 stocks hit their 52-week lows and more than 200 stocks hit lower circuit on BSE.
Long build-up was seen in stocks such as ONGC, Bank of Baroda, Canara Bank and Shriram Transport Finance Company.
Short build-up was seen in stocks such as Jubilant FoodWorks, SRF, Jindal Steel and DLF.
The Nifty registered a 'Long Black Day' formation, as the index lost around 300 points from the intraday high of 13,145.
"This reversal formation from a critical resistance point on the long-term charts is hinting at a multi-week top around 13,145. Hence, any rally shall remain vulnerable for a selloff with an initial target of 12,730," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
If bulls manage to defend the low of 12,833 in the next session, then the trend may remain sideways for a couple of days, he said.
"In that scenario, the bulls may attempt a pullback rally which can enter into the zone of 12,952 – 12,989 levels, which shall remain vulnerable to a selloff. In case the Nifty closes below 12,833 in the next trading session, then it should initially head towards 12,730 but an eventually bigger target of 12,350 can't be ruled out," he said.
"Positional traders with high-risk appetite are advised to make use of rallies to create fresh short positions as trend shall continue to remain in downward trajectory unless the Nifty closes above 13,150 levels."Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.