Mid-day Mood: Indices trade in a range; auto, bank stocks find buyers, no takers for pharma, IT

The market is expected to remain lacklustre and consolidate in a range in the absence of any major events, and start of the holiday season.

The benchmark indices continued to trade flat by the mid-day November 23 amid mixed global cues. Buying was largely confined to auto and bank stocks, while pharma, energy, infra and IT stocks saw some selling. The 10-year US bond yield hovering around 4.4 percent and the declining volume of FII selling augur well for the market, according to analysts.

The market is expected to remain lacklustre and consolidate in a range in the absence of any major events, and start of the holiday season.

At 11:21am, the Sensex was up 35.57 points or 0.05 percent at 66,058.81, and the Nifty was up 2.60 points or 0.01 percent at 19,814.40. About 1,893 shares advanced, 1,143 declined, and 113 were unchanged. In the broader markets, BSE MidCap and SmallCap indices traded marginally higher.

Follow our market blog to catch all the live action

The distinctive near-term trend is the narrowing range of the market, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. "The market is exhibiting resilience within this narrow range movement. Within the range, the 'buy on dips' strategy is working. The market is waiting for triggers for a breakout, which may come with the state election results."

He added that if the state election results confirm political stability after the general elections next year, a pre-election rally is likely to kick off.

Stocks and Sectors in focus

Shares of Honasa Consumer, the owner of beauty and personal care (BPC) brand Mamaearth, hit the 20 percent upper circuit on November 23 after the company reported robust Q2 results with the net profit doubling to Rs 30 crore.

Honasa Consumer earned favourable reactions from Jefferies with a ‘buy’ rating on the stock. The brokerage has set a share price target of Rs 530 on the stock, implying a 25 percent upside from current levels.

Shares of Servotech Power Systems were locked in the 5 percent upper circuit at Rs 79.10 in the early trade after the company announced receiving an order for EV chargers from Bharat Petroleum Corporation Limited (BPCL).

Shares of TVS Motor Company gained over 1.5 percent to to hit a new 52-week high on November 23, extending a rally for the third day in a row, after the company announced its entry into Vietnam jointly with Minh Long Motors, its distribution partner.

Also read | Half of Nifty 50 stocks hit 52-week highs in past month, market holds steady

"Leading banking stocks weighed down by sustained FII selling and the recent RBI action increasing the risk weighting on unsecured loans are good long-term buys for patient investors," said Geojit's Vijayakumar.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.