Presenting Partner

Life Insurance Corporation of India

Moneycontrol

Budget 2022

Associate Partners:

  • Kotak Mutual Fund
  • Pharmeasy
  • Indiabulls
  • SBI

Presenting Partner

Life Insurance Corporation of India

Moneycontrol

Budget 2022

Technology Partner

Dell Technologies

Associate Partners

Kotak Mutual Fund
Pharmeasy
Indiabulls
SBI
UPCOMING EVENT:Are you 45+? Planning for retirement? We have just the right webinar for you - Planning for Retirement with Life Insurance on 27-Jan, 3pm. Register now!

Taking Stock | Omicron cases spook investors; Sensex plunges 949 points, Nifty ends below 17,000

Except UPL, all Nifty50 stocks ended in the red. Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top losers

December 06, 2021 / 04:47 PM IST

Indian equity benchmarks tanked almost two percent to end lower for the second consecutive session on December 6, as rising cases of Omicron variant spooked investors, with information technology and autos stocks taking a beating.

The market started a tad lower but extended the fall as the day progressed. It ended near the day's low amid profit-booking across sectors on the day the Reserve Bank of India’s monetary policy committee began its meeting. Its outcome will be shared on December 8.

At close, the Sensex was down 949.32 points, or 1.65 percent, at 56,747.14, and the Nifty was down 284.40 points, or 1.65 percent, at 16,912.30.

Also read: Nifty breaks 17,000, Sensex falls 1,000 pts; 5 factors that dragged markets lower

"Indices started the day weak and selling intensified during afternoon trade, with almost all sectoral indices ending in the red. As the street awaits the RBI stance on interest rates, the Nifty sold off below 17K today as bears held upper hand on a day which saw no recovery," said S Ranganathan, Head of Research at LKP Securities.

Close

There was no respite in selling by foreign institutional investors (FII) despite accumulation seen during the day in high quality financials by local investors, he added.

Broader indices were a shade better than the benchmarks, with the BSE midcap and smallcap indices falling 1.35 percent each.

Except UPL, all Nifty50 stocks ended in the red. Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top Nifty losers.

All sectoral indices too flashed red, with the Nifty IT index falling 2 percent. Auto, bank, energy, metal, PSU bank and pharma indices were down a percent each.

Stocks and sectors

On the BSE, IT index shed over 2 percent, while other sectoral indices lost a percent each.

Among individual stocks, a volume spike of more than 100 percent was seen in Metropolis Healthcare, Coromandel International and Godrej Properties.

A short build-up was seen in Atul, JK Cement and Dalmia Bharat.

Over 200 stocks, including Vodafone Idea, BEML and, Bajaj Holdings, hit a 52-week high on the BSE.

Technical View

The Nifty formed a big-bodied Bearish Marubozu candle on the daily scale, indicating complete dominance of bears.

Till the Nifty remains below 17000, weakness can be seen towards 16,800 and 16,500 zones whereas hurdles are placed at 17200 and 17350, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Outlook for December 7

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The market continued its downward trajectory and threatened the 16,900 level. The index is heading towards the recent low of 16,750-16,780. If it slips, the Nifty can fall to 16,400-16,450.

Mohit Nigam, Head-PMS, Hem Securities

On the economy front, investors would be eyeing the RBI MPC meeting and the Index of Industrial Productions (IIP) data which will be released on December 10.

On the technical front, the Nifty is trading around the crucial support zone of 16,800-16,850 and if it fails to not sustain above it, we may see some volatility in the coming days.

For the Nifty, immediate support is 16,800 and and resistance 17,250 and for the Bank Nifty it is 35,350 and 36,500, respectively.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

For the day traders, the texture is volatile and weak and 17,000 could act as a trend decider level. Below it, correction can continue up to 16,850-16,800.

An intraday breakout above 17,000 could see the index move to 17,085-17,125 levels. Contra traders can take a long bet near 16,800 with a strict 16750 support stop loss.

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 making any investment decisions.
Rakesh Patil
first published: Dec 6, 2021 04:47 pm
Sections
ISO 27001 - BSI Assurance Mark