Indian markets closed in the red on November 16 amid volatility, dragged by banking, metal, pharma and oil & gas stocks, while auto and IT names lent some support.
At close, the Sensex was down 396.34 points, or 0.65 percent, at 60,322.37, and the Nifty was down 110.30 points, or 0.61 percent, at 17,999.20.
The market, which started on a negative note, remained under selling pressure. It did see some recovery in the afternoon session but profit-booking dragged Indian shares lower in the final hour of trading.
"As investors try to figure out the valuation disconnect between the recently listed digital entities versus their traditional counterparts who built distribution reach offline, the euphoria around the former seems to have set minds thinking," said S Ranganathan, Head of Research at LKP securities.
"As the street worries on inflationary pressures leading to companies raising prices and their consequent impact on demand, we saw a highly volatile trading session today."
The auto sector though bucked the trend, with auto original equipment manufacturers (OEMs) seeing good buying interest on reports of easing in chip and semiconductor shortages, he said. The auto index was up 3 percent in the afternoon trade.
Broader markets again ended mixed. The BSE midcap index was down 0.22 percent, while the smallcap index closed with marginal gains.
Shree Cements, Reliance Industries, Hindalco Industries, Tata Consumer Products and SBI were among the major Nifty losers. Gainers included Maruti Suzuki, M&M, Tata Motors, Hero MotoCorp and Tech Mahindra.
Among sectors, the Nifty Auto index added 2.5 percent and IT 0.5 percent. Nifty bank, energy and pharma took a tumble, each ending a percent lower.
Stocks and sectors
On the BSE, oil & gas and Bankex shed a percent each, while the auto index rose 2.6 percent.
Among individual stocks, a volume spike of more than 400 percent was seen in Maruti Suzuki, Coforge and Vodafone Idea.
Long buildup was seen in Birlasoft, Coforge and Chambal Fertilisers, while short buildup was seen in Ashok Leyland, Vodafone Idea and Mannapuram Finance.
More than 150 stocks, including Thermax, Escorts and Mindtree, hit 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the daily scale and negated its higher highs of the last two trading sessions.
The index has to cross and hold above 18,000 for an up move towards 18,200 and 18,350 zones. While on the downside, supports shifted lower to 17,900 and 17,777 levels, said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for November 17
Ajit Mishra, VP-Research, Religare Broking
Mixed global cues are keeping the participants on the edge and the trend is expected to continue in near future.
Among the sectors, continuous underperformance of the banking pack is dragging the benchmark lower, while others help check the damage. In the current scenario, it’s prudent to stay light and wait for clarity.
Palak Kothari, Research Associate, Choice Broking
Technically, the index has formed a bearish candle on the daily time frame, which shows weakness in the counter.
On the hourly chart, the Nifty has been trading with lower highs lower lows, which point to some correction in the next trading session.
The index has given a close below 21-DMA. The Stochastic indicator, too, is showing negative crossover, pointing to weakness in the next trading sessions. The index has support at 17,800, while resistance is at 18,250.
Mohit Nigam, Head-PMS, Hem Securities
PSU banks and pharma companies faced pressure, while strong buying was seen in automobile stocks on the back of reports of improvement in chip availability.
On the technical front, the Nifty is trading around the key support zone of 18,000 and if it sustains above the level for a few sessions, we can see a good up move in the near term. Immediate support and resistance are at 17,850 and 18,250, respectively.
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