Taking Stock | Sensex, Nifty fall amid volatility; IT, metals gain, FMCG drag

After a sharp bounce in the previous session, the Indian equity benchmarks ended lower on November 14 on mixed global cues, with the 30-pack Sensex closing 170.89 points, or 0.28 percent, down at 61,624.15 and the Nifty 20.50 points, or 0.11 percent, lower at 18,329.20.

The market opened flat and traded in the red for the most part of the session to finish near the day's low.

"Although there were favourable domestic indicators, the market was under pressure due to weakness in the US and other Asian markets. India's wholesale inflation dropped below forecasts, aided by a slowdown in the prices of manufactured goods and fuel and electricity," said Vinod Nair, Head of Research at Geojit Financial Services.

The domestic Consumer Price Index inflation, which is anticipated to continue the trend, would boost confidence in the Indian market, lowering the risk indicators for the Reserve Bank of India which has been hawkish in raising interest rates, he added.

Hindalco Industries, Apollo Hospitals, Tata Motors, Grasim Industries and Kotak Mahindra Bank were among the top Nifty gainers, while the biggest losers were Dr Reddy's Laboratories, ITC, Coal India, HUL and SBI.

On the sectoral front, the Nifty FMCG index fell 1 percent and the PSU Bank index shed 0.6 percent. The metal index added 1.7 percent and the information technology index rose 0.8 percent.

The BSE midcap and smallcap indices ended flat.

On the BSE, realty and metal indices were up 1 percent each, while healthcare and information technology gained 0.5 percent each. The FMCG index shed 1 percent and the power index 0.7 percent.

Among individual stocks, a volume spike of more than 300 percent was seen in Abbott India, Sun TV Network and Astral.

A long build-up was seen in Info Edge India, Hindalco Industries and Exide Industries, while a short build-up was seen in Sun TV Network, BHEL and ABB India.

More than 150 stocks touched their 52-week high on the BSE. These included Ambuja Cements, VIP Clothing, Timex Group India, Rama Steel Tubes, KRBL, ION Exchange, Godfrey Phillips, FIEM Industries, Dredging Corporation, Cochin Shipyard and Adani Enterprises.

The market exhibited sideways movement in a lacklustre trading session and ended lower as traders booked profit in select counters after the last week's robust upsurge.

A lack of positive global triggers prompted investors to trim their holdings but any uptick in crude oil prices and currency movement can fuel a fresh round of profit-taking.

On the daily charts, the Nifty formed a small bearish candle, indicating indecisiveness among the bulls and the bears.

The Nifty crossed 18,300 in the previous session. On November 14, it witnessed a brief consolidation above the level. The hourly chart shows that a rising trendline drawn from the previous key swing highs acted as a resistance near 18,400.

On the downside, 18,300-18,200 will act as support as per the principle of role reversal.

It will be crucial to see if the Nifty manages to sustain above this area to keep the upside trajectory intact. On the other hand, a breach of this zone will drag the index to 18,000

The market started the week on a muted note and ended almost unchanged, taking a breather after the recent surge.

Though we’re just inches away from record highs, the absence of momentum is keeping the participants, especially traders, on their toes. A lack of broader participation is adding to their worries.

We reiterate our view to focus on identifying the top performers from across sectors and utilise intermediate pauses and dips to add them gradually.

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.