A big day for Indian markets as both the Sensex and the Nifty hit fresh record highs on November 26 before witnessing mild profit-taking to end marginally lower.
The final tally on D-Street: the Sensex hit a record high of 41,120 before closing 67 points lower at 40,821, while the Nifty surged to a life high of 12,132 before closing 36 points lower at 12,037.
In terms of sectors, action was seen in the Bankex, FMCG stocks, while profit-taking was seen in the telecom, IT, capital goods, and auto stocks.
The broader markets underperformed. The BSE Midcap index was down by 0.79 percent, while the BSE Smallcap index closed 0.38 percent lower.
Positive global cues, especially developments around the US-China trade deal, are driving the momentum not just in Indian markets but across the globe. Consistent buying by FIIs and hopes of continued reforms from the government also helped the sentiment.
It is a liquidity-driven rally that is pushing benchmark indices to record highs, with 50 BSE stocks hitting fresh 52-week highs. However, more than 100 BSE stocks were at fresh 52-week low.
“Market elevated to a record high coupled with global cheer on a trade deal and domestic earnings revival expectation. However, volatility ahead of derivative expiry, political drama and caution on upcoming GDP data led investors to book some profit,” Vinod Nair, Head of Research at Geojit Financial Services, told Moneycontrol.
“Rising foreign inflows and confidence that the government will address the fiscal gaps through divestment can maintain the buoyancy in the market," he said.
Top Nifty gainers: Dr Reddy’s Laboratories, GAIL India, and ICICI Bank
Top Nifty losers: ZEE Entertainment, Bharti Infratel, Bharti Airtel, and Grasim Industries.
Stocks and sectors
Sectorally, the BSE Bankex was up 0.67 percent, followed by the FMCG index, which closed with gains of 0.06 percent. Profit-taking was seen in the BSE Telecom index, which was down 4.9 percent followed by the S&P BSE IT index that slipped 1.2 percent, and the S&P BSE Capital Goods index closed 1.1 percent lower.
The Nifty Bank, which hit a record high of 31,850, closed with gains of 162 points to 31,718.
Volume rise of 100-300% was seen in stocks like Wipro, Siemens, NIIT Tech, Berger Paints, Colgate Palmolive, ICICI Bank, and Oil India Ltd.
Long Buildup –ICICI Bank, Bosch, HUL, Petronet LNG, HDFC Bank
Short Buildup – Colgate Palmolive, ICICI Prudential, Siemens, Ambuja Cements
Upper Circuit –More than 200 stocks were locked in upper circuit, including Tejas Network and Magma Fincorp.
Lower Circuit—Edelweiss, Coffee Day, CG Power, Lakshmi Vilas, Reliance Infra, and Reliance Capital
Nearly 50 stocks hit fresh 52-week highs. They include Divi’s Laboratories, ICICI Bank, Jubilant FoodWorks, RIL, Dr Reddy’s Laboratories, Adani Green and Aavas Financiers.
Stocks in news
Zee Entertainment: Zee Entertainment share price slipped 7 percent following the resignations of chairman Subhash Chandra and other senior officials.
Indoco Remedies: Indoco Remedies ended almost 10 percent higher on November 26 after the US health regulator cleared its Hyderabad unit.
Telecom stocks: Telecom stocks closed in the red after the telecom department didn’t raise the tariff issue with Trai. The telecom department has not referred the issue of fixing a floor price for telecom tariffs to Trai, a source.
Tejas Networks: Tejas Networks jumped 10 percent on November 26 after the company signed a memorandum of understanding with Bharat Electronics.
InterGlobe Aviation: InterGlobe Aviation ended over 2 percent lower on November 26 after DGCA warned of grounding more flights over engine trouble.
A day of consolidation for Indian markets as the Nifty formed a bearish candle on the daily charts despite hitting record highs.
There is no apparent sell signals or weakness on the lower time-frame charts. Traders need to maintain an optimistic outlook.
As long as the Nifty sustains above 11,919 levels, it is a buy on dips market. The next target is 12,300-12,350.
If the Nifty slips below 12,006 levels in the next session, then initially it should slide to 11,940 levels, where the best buying opportunity is available with a stop below 11,919 on a closing basis, say experts.