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Taking Stock | Bears maul the market as Sensex dives 1,170 points, Nifty slips below 17,500

If the Nifty remains below 17,500, weakness may stretch towards 17,250 and 17,000, Chandan Taparia of Motilal Oswal Financial Services has said

November 22, 2021 / 04:50 PM IST

Indian equity benchmarks continued to slide for the fourth straight session to fall 2 percent each on November 22, as selling across sectors, weak global cues, and repeal of farm laws weighed on sentiment.

At close, the Sensex was down 1,170.12 points or 1.96 percent, at 58,465.89, and the Nifty was down 348.30 points, or 1.96 percent, at 17,416.50.

Indian markets opened on a negative note and selling got extended as the day progress, dragged by Reliance Industries following the announcement that the company and Saudi Aramco had decided to re-evaluate the proposed investment in its oil-to-chemical (O2C).

"Finally, the bears got their act together after a long wait as a series of events over the weekend gave them the upper hand with almost all the sectoral indices, barring the metal index, plunging today," said S Ranganathan, Head of Research at LKP Securities.

The repeal of the agriculture laws had an impact on the PSU stocks, while the decision to re-valuate the O2C deal left a 4.5 percent cut on Reliance, he said.

Close

Paytm’s listing fiasco, too, seems to have shaken investor confidence. The slide continued for the second session, with the share falling 12.7 percent to Rs 1,362 on NSE.

“Even as IPO investors come to terms with the reality, the inflationary impact on demand across several sectors continues to worry the street," he added.

Broader markets underperformed the benchmark indices, with BSE midcap and smallcap indices closing 2-3 percent down.

IndexPricesChangeChange%
Sensex57,107.15-1,687.94 -2.87%
Nifty 5017,026.45-509.80 -2.91%
Nifty Bank36,025.50-1,339.25 -3.58%
Nifty 50 17,026.45 -509.80 (-2.91%)
Fri, Nov 26, 2021
Biggest GainerPricesChangeChange%
Cipla966.7066.75 +7.42%
Biggest LoserPricesChangeChange%
JSW Steel628.65-52.25 -7.67%
Best SectorPricesChangeChange%
Nifty Pharma13797.10230.60 +1.70%
Worst SectorPricesChangeChange%
Nifty Metal5323.75-300.25 -5.34%

Bajaj Finance, Bajaj Finserv, ONGC, Tata Motors and Reliance Industries were among major losers on the Nifty. Gainers included Bharti Airtel, Asian Paints, JSW Steel, Power Grid and Hindalco Industries.

All the sectoral indices ended in the red, with Nifty Bank, auto, energy and PSU bank indices down 2-4 percent.

Stocks and sectors

On the BSE, the realty index fell 4.4 percent. Oil & gas and auto indices were down 3 percent each, while healthcare and Bankex indices both ended 2 percent lower.

Among individual stocks, a volume spike of more than 400 percent was seen in Indiabulls Housing Finance, IRCTC and SAIL India.

Long buildup was seen in Grasim Industries, Power Grid, while short buildup was seen in Alkem Laboratories, Siemens and Bata India.

Over 150 stocks, including Raymond, Escorts and Bharti Airtel hit a 52-week high on the BSE.

Technical View

The Nifty formed a big bearish candle on the daily scale and formed lower highs-lower lows from the fourth straight session.

If the Nifty remains below 17,500, weakness could continue towards 17,250 and 17,000, whereas upside hurdles exist at 17,650 and 17,777, said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for November 23

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets broke 17,600 and as expected, saw a sharp move southward. The market came close to the support level 17,200 and bounced thereafter.

The short-term trend has been disrupted. If the momentum continues, the index can slide to 16,850. The upside is capped at 18,150-18,200 and until that is crossed, the index will be in a negative trend.

Sachin Gupta, AVP, Research at Choice Broking:

Technically, the Nifty confirmed Head & Shoulder Pattern breakdown on the daily chart and moved down from the neckline.

The index has also stayed below Lower Bollinger Band formation, which indicates a bearish trend for the coming day.

Stochastic & MACD indicators, too, saw a negative crossover on the daily timeframe, suggesting a bearish move in the index.

The Nifty has immediate support at 17,200, while resistance is at 17,650. The Bank Nifty has support at 36,300 and resistance at 38,500.

Mohit Nigam, Head-PMS, Hem Securities

The market ended the day 2 percent lower. Several pieces of negative news led to the correction. The latest debutant Paytm corrected further by trading 40 percent below its IPO price, weakening investor sentiment.

The Nifty will take support at 17,200, while mild resistance is at 17,500. The Bank Nifty has support at 36,700 and resistance at 38,300.

The correction is a good opportunity for investors to make fresh investments.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Rakesh Patil
first published: Nov 22, 2021 04:50 pm

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