Taking Stock | Sensex, Nifty end lower; broader markets outperform

The market witnessed rangebound trading in the highly volatile session on November 27 ahead of the GDP data to be announced later during the day. The BSE Sensex was down 110.02 points, or 0.25 percent, at 44,149.72 and the Nifty was down 18 points, or 0.14 percent, at 12,969.

"Today’s market momentum was driven by uncertainty related to the efficacy of COVID vaccine and expectation of Q2 GDP data. Although GDP is expected to improve compared to the previous quarter, the recovery in the Indian economy is likely to be lower in comparison to its global peers. Broader markets are outperforming the main benchmark, showing a shift in demand to mid & small cap," said Vinod Nair, Head of Research at Geojit Financial Services.

"From these high levels, for the market to stay resilient and midcaps to outperform, the economy has to normalise and more stimulus has to be announced, which will take some more time based on the government’s plan and availability of the vaccine," he added.

Among the sectors, the Nifty auto index added 1.4 percent and the PSU bank index rose 1.2 percent, while some selling was seen in the energy, IT and infra stocks.

Broader markets outperformed the benchmark indices, with the BSE midcap jumping 2 percent and smallcap index 2.4 percent.

Britannia, Asian Paints, Tata Motors, Hero MotoCorp and Titan Company were among major Nifty gainers, while losers included Power Grid Corp, JSW Steel, ONGC, HCL Tech and HDFC Life.

Stocks & sectors

The BSE realty index rose 2.7 percent, auto index 1.2 percent and healthcare index was up 0.97 percent.

A volume spike of more than 100 percent was seen in Canara Bank, Mahanagar Gas and Indiabulls Housing Finance.

Long buildup was seen in Balkrishna Industries, MRF and Apollo Hospitals, while short buildup was seen in Kotak Mahindra Bank, ACC and Nestle India.

More than 100 stocks hit a fresh 52-week high on the BSE, including Jindal Steel, Wockhardt and Salzer Electronics.

Technical View

The Nifty formed a bearish candle on the daily scale, where as weekly charts witnessed an indecisive Doji formation hinting that the bulls are running out of clues about further direction ahead.

"Strength in this market shall not be expected unless it closes above 13,145 levels. Therefore, a close below 12,858 can be treated as an initial sign of weakness, whereas a close below 12,790 shall resume the down trend paving the way for much needed corrective downswing," said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory at Chartviewindia.in.

"In case the index sustains above 13k levels in next session on a closing basis, then it shall remain rangebound between 12,790 and 13,100 kinds of levels for a couple of trading sessions before it takes off critical levels in either direction," he added.