Indian benchmark indices ended lower in a volatile session on December 13, dragged by realty, oil & gas and PSU banking stocks ahead of domestic inflation data and key central banks' policy outcome.
At close, the Sensex was down 503.25 points or 0.86% at 58,283.42, and the Nifty was down 143 points or 0.82% at 17,368.30.
After a gap-up start for the week, the market remained in positive territory for the initial hours, but later erased all the intraday gains and turned negative to end near the day's low.
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"Ahead of the release of domestic inflation data and key global central bank meetings, the benchmark indices dived into the negative zone digesting weak macroeconomic numbers and continued FII selling. India’s Index of Industrial Production grew by 3.2% in October, which was lower than market expectations," said Vinod Nair, Head of Research at Geojit Financial Services.
US CPI inflation was above the expected lines, up 6.8% on year in November, owing to rising prices for food, energy and shelter.
"In view of the rising global inflation, the policy outcome of key central bank meetings, especially the US Fed and European Central Bank, will be keenly monitored by the markets," Nair added.
Broader indices outperformed the main indices with BSE midcap index falling 0.53 percent, while the smallcap index was up 0.24 percent.
Bajaj Finance, Bajaj Finserv, Tata Consumer Products, Reliance Industries and M&M were among the top Nifty losers. Gainers included Tech Mahindra, Axis Bank, Maruti Suzuki, Wipro and SBI Life Insurance.
Except Nifty IT, all other sectoral indices ended in the red, with Nifty Energy and PSU Bank indices down 1 percent each.
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Stocks and sectors
On the BSE, all the sectoral indices ended lower with realty and oil & gas indices down 1 percent each.
Among individual stocks, a volume spike of more than 500 percent was seen in Birlasoft, Persistent Systems and Aarti Industries.
A long build-up was seen in Persistent Systems, Polycab India, and Syngene International, while there was a short build-up in Astral, Shriram Transport Finance Corporation and Info Edge India.
More than 300 stocks, including Tech Mahindra, Zee Entertainment and Welspun Corp hit a 52-week high on the BSE.
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Technical View
The Nifty formed a bearish engulfing candle on the daily scale and wiped out the recovery of the last two sessions.
The Nifty needs to hold above 17,350 for an upmove towards 17,600 and 17,777 zones, whereas on the downside, support shifts to 17,200 and 17,100 zones, said Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services.
Outlook for December 14
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
On the daily chart, the index has formed a Popgun pattern, which makes today’s high of 17639 a key resistance. The overall structure shows that the short term consolidation is likely to continue further before the index prepares for a larger upmove.
On the downside, the Nifty is expected to fill up a recent gap area, which is near 17250-17300.
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Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The resistance of 17500 is crucial for the markets and we have to close above it in order to scale higher.
On the flip side, if 17300 breaks, we might see a deeper correction, which could take the index lower to 17000.
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