Taking Stock | Market ends marginally lower amid volatility; PSU banks outshine

The Indian benchmark indices edged lower for the second consecutive day in a volatile session on November 3 after the US Fed again raised interest rates while hinting at smaller increases in the future.

Indian shares opened on a negative note amid weak global cues after the Federal Reserve increased interest rates by 75 basis points. In the afternoon session, the indices witnessed some selling pressure but last-hour buying helped curtail losses.

At close, the Sensex was down 69.68 points, or 0.11 percent, at 60,836.41, and the Nifty was down 30.10 points or 0.17 percent at 18,052.70.

"The Fed’s refusal to tone down the rate hike narrative shattered the global markets as investors were in expectation of a dovish commentary. (Jerome) Powell cautioned that the desired Fed rate level is higher than expected, even though he indicated a rate hike of less than 75 bps in the upcoming meetings," said Vinod Nair, Head of Research at Geojit Financial Services.

On the back of concerns about the US recession, IT stocks led the domestic selloff, while foreign investors helped limit the losses, he added.

Tech Mahindra, Hindalco Industries, Power Grid Corporation, NTPC and Infosys were among the top Nifty losers. Gainers included SBI, Titan Company, UPL and HUL.

Among sectors, the Nifty PSU bank index added 2.5 percent, while energy and information technology indices fell 0.5-1 percent.

The BSE midcap index was up 0.22 percent and the smallcap index 0.11 percent.

On the BSE, information technology and power indices fell a percent each. Some buying was seen in bank, FMCG and realty names.

Among individual stocks, a volume spike of more than 200 percent was seen in Piramal Enterprises, HPCL and Balkrishna Industries.

A long build-up was seen in Mahindra & Mahindra Financial Services, Piramal Enterprises and Biocon, while a short build-up was seen in Voltas, Balkrishna Industries and Intellect Design Arena.

More than 100 stocks touched a 52-week high on the BSE, including ITC, South Indian Bank, Granules India, UCO Bank, Tube Investments of India, Canara Bank, Karnataka Bank and Cochin Shipyard.

Relaxo Footwears, SREI Infrastructure Finance, Symphony, Cyient and Intellect Design Arena sank to their 52-week lows.

The benchmark indices witnessed a volatile session. The IT index lost the most and declined more than 1.14 percent, whereas PSU Banks bounced to rally 2.64 percent.

The current market texture is non-directional, perhaps traders are waiting for a breakout on either side.

For the bulls, 18,150/61,100 will be the fresh breakout levels, above which the Nifty can rally to 18,250-18,300 and the Sensex 61,300-61,500. A fresh round of selling is possible only after the dismissal of 17,950 and 60,500 levels, below which, the Nifty can slip to 17,850-17,800 and the Sensex to 60,300-60,150.

The Nifty formed a bearish outside bar along with an Engulfing bear candle on November 2. Thereon, it stepped into a short-term consolidation. On November 3, the index dipped below the immediate support of 18,000 intraday but recovered enough to close above it.

Once 18,000 is breached on a closing basis, the Nifty will test 17,800. On the higher side, 18,200 will be the resistance for the short term. Thus, 17,800-18,200 will be the short-term consolidation range, within which, the index is expected to move towards the lower end.

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