The Indian equity benchmark closed with minor gains in yet another volatile session on November 16, with the Sensex ending 107.73 points, or 0.17 percent, higher at 61,980.72 and the Nifty gaining 6.30 points, or 0.03 percent, at 18,409.70.
After a muted start following mixed global cues, the Indian market gyrated between gains and losses. The Sensex and the Nifty crossed 62,000 and 18,400, respectively, but failed to extend the rally.
"As the domestic market has started to trade around the all-time high levels, it is trending indecisively following the recent geopolitical tensions and weak performance by global counterparts," said Vinod Nair, Head of Research at Geojit Financial Services.
Though domestic macroeconomic indicators and FII inflows were favourable, given the high valuations, domestic markets could remain cautious in the short to medium term, he said.
"Rest of the other EMs (emerging markets) look more attractive when the global market is attempting to bounce back after a long period of consolidation," Nair added.
Stocks and sectors
Kotak Mahindra Bank, Coal India, HDFC Bank, Dr Reddy's Laboratories and HUL were among the top Nifty gainers, while the biggest losers were Apollo Hospitals, Adani Enterprises, Hindalco Industries, Adani Ports and JSW Steel.
Power, realty and metal indices fell a percent each, while some buying was seen in the banking names.
The BSE midcap index shed 0.6 percent and the smallcap index was down 0.3 percent.
On the BSE, auto, oil & gas, bank and power indices were up 0.5-1 percent, while selling was seen in the capital goods and metals stocks.
Among individual stocks, a volume spike of more than 200 percent was seen in Metropolis Healthcare, Hindustan Aeronautics and PI Industries.
A long build-up was seen in Hindustan Aeronautics, Kotak Mahindra Bank and Balrampur Chini, while a short build-up was seen in Metropolis Healthcare, Apollo Tyres and Indiabulls Housing Finance.
DCB Bank, CG Power, Mazagon Dock Shipbuilders, Adani Enterprises, Bharti Airtel, Housing & Urban Development Corporation, IRCON International, Ujjivan Financial Services were among the stocks that touched their 52-week high on the BSE.
On the other hand, Ashapura Minechem, DCM Shriram, Mastek and Voltas sank to their 52-week low.
Outlook for November 17
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets moved in a narrow range with bouts of sideways movement but selective buying in late trade helped key indices to end in positive territory. The lacklustre trend was visible across Asian and European markets, which prompted local traders to move cautiously.
After last week's spectacular rally, investors are in no hurry to lap up stocks despite some tailwinds in the domestic economy.
Technically, the Nifty formed a small Doji candle on daily charts. The current market texture is non-directional and a fresh uptrend is possible only after the 18450 breakout level after which the index can hit 18,550-18,600. On the flip side, a dismissal of 18,350 can accelerate the selling pressure, which can see the index slide to 18,250-18,200.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed a tough battle between the bulls and the bears and ultimately posted a marginal positive close. The volatility is likely to increase, as indicated by the India VIX, which is set for a spike.
On the higher side, the index again paused near the rising trendline drawn from the previous key swing highs on the hourly chart.
While 18,450-18,500 is the key zone to monitor on the higher side, 18,300-18,280 will be the key support zone.
If the Nifty slips below 18,280, the structure will turn in the favour of the bears for the short term. The broader end of the market continues to show short-term weakness.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own, not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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