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Taking Stock | Profit booking drags Nifty below 18,000, Sensex falls 433 points

For the week, both BSE Sensex and Nifty50 lost nearly 2 percent each.

November 18, 2021 / 06:00 PM IST

Market ended lower for the third consecutive session in the truncated week ended on November 18, with selling seen in auto, metal, IT, pharma, and realty names.

At close, the Sensex was down 433.05 points or 0.72% at 59,575.28, and the Nifty was down 133.90 points or 0.75% at 17,764.80.

After a flat to positive start, the market got trapped in the bears' grip with  intense selling pressure as the day progressed; however, in the second half, the market witnessed some recovery and ended with 0.7 percent cut.

The market will remain shut on November 19, 2021 on account of Gurunanak Jayanti.

For the week, both BSE Sensex and Nifty50 lost nearly 2 percent each.

Close

"Weak listing of India’s largest IPO and soft global market amid rising inflation woes impacted domestic sentiment. In the context of a weak global market, contraction extended in metal and crude oil prices weighing down the Indian market," said Vinod Nair, Head of Research at Geojit Financial Services.

"The auto sector was also under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors," he added.

Broader markets underperformed the benchmark indices with BSE midcap and smallcap indices fell 1.5 percent each.

IndexPricesChangeChange%
Sensex57,107.15-1,687.94 -2.87%
Nifty 5017,026.45-509.80 -2.91%
Nifty Bank36,025.50-1,339.25 -3.58%
Nifty 50 17,026.45 -509.80 (-2.91%)
Fri, Nov 26, 2021
Biggest GainerPricesChangeChange%
Cipla966.7066.75 +7.42%
Biggest LoserPricesChangeChange%
JSW Steel628.65-52.25 -7.67%
Best SectorPricesChangeChange%
Nifty Pharma13797.10230.60 +1.70%
Worst SectorPricesChangeChange%
Nifty Metal5323.75-300.25 -5.34%

SBI, Power Grid Corp, HDFC Bank, IOC and Divi's Labs were among major gainers on the Nifty, while losers were Tata Motors, Tech Mahindra, M&M, HCL Technologies and L&T.

Among sectors, the Nifty Auto and Metal indices shed over 2 percent each, while IT and Pharma indices fell 1 percent each.

Stocks and sectors

All the sectors ended in the red with auto and metal indices falling over 2 percent each. Also, Capital Goods, IT, Healthcare, Realty indices fell 1 percent each.

Among individual stocks, a volume spike of more than 500 percent was seen in PNB, Adani Ports and Vedanta.

Long buildup was seen in Escorts, PNB and SBI, while short buildup was seen in Adani Ports, JK Cement and JSW Steel.

200 stocks, including Mindtree, Lyka Labs, Escorts, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bearish candle on daily as well as on weekly scale and it is forming lower highs - lower lows since the last three sessions.

Now, till Nifty remains below 17,850, weakness could continue towards 17,650 and 17,500 zones, whereas upside hurdles exist at 18,000 and 18,100 zones, said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for November 22

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

The markets bounced swiftly from around the 17,600 level as that is the lower end of the current range and the short-term support for the Nifty.

If we break that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 17,200.

On the upside, the resistance is at 18,150 and until we do not get past that, the current range-bound movement will continue.

Palak Kothari, Research Associate at Choice Broking:

Technically, the index has given a breakdown of the rising trend line & given closing below 50 DMA, which suggests weakness for the next trading sessions. From the last four trading sessions, the index has been trading with lower highs & lower lows, which points out some corrections for the next trading session.

However, the Index has taken support from the lower band of Bollinger, breaching below can show further downside. Furthermore, the index has given closing below 21 DMA as well as the Stochastic & MACD indicator is trading negative crossover, which points to weakness in the counter for the next trading sessions. At present, the index has a support level of 17,650, while resistance is at 18,000 levels.

Mohit Nigam, Head - PMS, Hem Securities:

On the technical front, 17,700 and 18,000 are near term support and resistance in Nifty 50 and for Bank Nifty, 37,680 may act as immediate support while 38,396 is seen as resistance level.

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.
Rakesh Patil
first published: Nov 18, 2021 06:00 pm

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