Taking Stock | Market snaps 3-day losing streak; Sensex up 274 points, Nifty above 18,200

Indian equity benchmarks snapped a three-day losing streak on November 22 supported by PSU banks though selling in power and realty stocks limited the gains.

At close, the Sensex was up 274.12 points, or 0.45 percent, at 61,418.96 and the Nifty was up 84.20 points, or 0.46 percent, at 18,244.20.

"After three days of risk aversion, the domestic market experienced a relief rally in response to a bullish trend in global markets," said Vinod Nair, Head of Research at Geojit Financial Services.

"The tight COVID lockdown in China, however, has negatively impacted the forecast for global growth. FII interest has also reduced significantly as a result of the increased likelihood of stricter Fed policies."

Stocks and sectors

IndusInd Bank, NTPC, JSW Steel, HDFC Life and UltraTech Cement were among the biggest Nifty gainers. The biggest losers were BPCL, Nestle India, Bharti Airtel, Power Grid Corporation and Kotak Mahindra Bank.

The Nifty PSU bank index rose 1.6 percent, while FMCG, information technology and metal indices gained 0.5 percent each. Selling was seen in energy names.

The BSE midcap index was up 0.5 percent, while the smallcap index ended flat.

On the BSE, power and realty indices shed a percent each but capital goods, FMCG, IT and metal indices were up 0.5 percent each.

Among individual stocks, a volume spike of more than 700 percent was seen in BHEL, Delta Corp and Balrampur Chini Mills.

A long build-up was seen in Shriram Transport Finance Corporation, Bank of Baroda and IndusInd Bank, while a short build-up was seen in Mahanagar Gas, Indraprastha Gas and Indian Energy Exchange.

More than 100 stocks, including Escorts Kubota, Prataap Snacks, UCO Bank, SKF India, Indian Overseas Bank, Canara Bank and Indian Bank, touched their 52-week high on the BSE.

On the other hand, Bandhan Bank, Entertainment Network (India), Jet Airways, Indigo Paints, Mphasis, Paytme parent One 97 Communications and Sanofi India sank to their 52-week low.

Outlook for November 22

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty has stepped into a short-term consolidation and the overall structure shows that this will be the trend for the next one or two weeks. Within this consolidation, the Nifty is expected to witness swings in both directions.

In the last couple of sessions, the index formed the first leg on the downside and closed in on the 20-DMA. Consequently, the Nifty went for a bounce back on November 22, which can take the index to the hourly upper Bollinger Band, which is near 18,300.

Over there, the index is likely to attract selling pressure. Overall, short-term consolidation is expected in the 18,000-18,450 range.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty started flat following global peers but had moved higher by the end of the session.

A bullish harami pattern on the daily chart suggests a recovery. The trend looks sideways to positive.

Going forward, 18,200 may provide immediate support below which the index can drift to 18,100. On the higher end, resistance is visible at 18,300 and 18,450.

Shrikant Chouhan, Head of Equity Research ( Retail), Kotak Securities

Despite a sluggish start, indices recovered to end with smart gains, mainly aided by a recovery in European markets. With two days to go for the monthly expiry, short covering came into play that rescued the markets.

Globally, the Chinese lockdown, rising interest rates and slowing demand will continue to weigh on the markets in the near to medium term.

Technically, after three days of price correction, the Nifty found support at around 18,150 and formed a small bullish candle on daily charts. The 10-day simple moving average (SMA) of 18,272 would be the immediate hurdle for the bulls. Above the 10-day SMA of 18,272, the index can move to 18,370 and a further upside can take it to 18,420.

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