The market was back to its losing way after a day’s pause in a volatile session on November 24, with the Sensex closing 323.34 points, or 0.55 percent, lower at 58,340.99, and the Nifty was down 88.30 points, or 0.50 percent, at 17,415.
After a flat start, power, oil & gas and banking stocks helped the market gain some momentum but selling in auto, IT and FMCG names in the afternoon session squandered the gains.
"Overhang from a number of new listings and pipeline of offerings in the coming few weeks has led to broad market weakness in the last one week. Banking names are consensus overweight for domestic and foreign institutions and net sell flow has caused these to underperform the market," said S Hariharan, Head- Sales Trading, Emkay Global Financial Services.
As net long positioning in the market has tilted significantly towards retail segment, potential for further weakness is significant, he said.
"Futures rollover basis has been cheaper than fair levels, suggesting that longs are reluctant to roll over positions. Consumer staples and auto sectors appear oversold and positioning tilted towards excessive shorts, while IT, metals and PSU names are consensus long sectors and may under-perform going ahead," Hariharan added.
Broader markets ended mixed. The BSE midcap index fell 0.5 percent, while the smallcap index added 0.4 percent.
Tata Consumer Products, Eicher Motors, Infosys, Maruti Suzuki and Grasim Industries were among major losers on the Nifty. Gainers included ONGC, Adani Ports, Coal India, Kotak Mahindra Bank and BPCL.
Among sectors, Nifty auto, IT and FMCG lost a percent each and the pharma index fell 0.5 percent, however, some buying was seen in banking names.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 58,340.99 | -323.34 | -0.55% | |
| Nifty 50 | 17,415.05 | -88.30 | -0.50% |
| Nifty Bank | 37,441.95 | 169.15 | +0.45% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Adani Ports | 763.05 | 33.80 | +4.63% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| TATA Cons. Prod | 798.95 | -22.00 | -2.68% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Bank | 37441.90 | 169.10 | +0.45% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 34966.30 | -538.10 | -1.52% |
Stocks and sectors
On the BSE, auto and IT indices fell 1 percent each, while capital goods index was down 0.9 percent. FMCG index lost 0.8 percent and healthcare index shed 0.3 percent.
Oil & gas and bankex indices rose 0.5 percent each.
Among individual stocks, a volume spike of more than 100 percent was seen in Chambal Fertilisers, Eicher Motors, Vodafone Idea and GSPL.
Long buildup was seen in Chambal Fertilisers, Torrent Pharma and SBI Life, while short buildup was seen in Trent, Pidilite Industries and TVS Motor.
More than 200 stocks, including Adani Enterprises, Escorts, Torrent Power and Raymond, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the daily scale but negated its lower highs-lower lows formation of the last five sessions.
If the Nifty stays below 17,500, weakness can extend to 17,350 and 17,200, on the upper side, hurdles exists at 17,600 and 17,777, said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for November 25
Sachin Gupta, AVP, Research, Choice Broking
On the daily chart, the index failed to sustain at the higher territory as it tasted the neckline of the Head & Shoulder pattern and moved lower again, which indicates weakness in the coming session.
However, the previous day, the index took good support at lower Bollinger Band formation and pulled up from 17,200 levels, which will act as immediate support for the near term. Resistance is at 17,650.
The Bank Nifty has support at 36,650 and resistance at 38,000.
Mohit Nigam, Head-PMS, Hem Securities
On the technical front, immediate support and resistance for Nifty are 17,300 and 17,630, respectively. For the Bank Nifty, support and resistance are 36,800 and 37,600.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
While the Nifty failed to surpass the resistance level of 17,600, the index formed a bearish candle along with lower top formation.
Ahead of the monthly F&O November series expiry, the market is likely to trade in the 17,340-17,520 range. Uptrend would be vulnerable below 17340.
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