The Indian equity market broke two-day winning momentum and ended lower in a highly volatile session on November 9. The Sensex was down 151.60 points or 0.25 percent at 61,033.55, while the Nifty was down 45.80 points or 0.25 percent at 18,157.
Despite mixed global cues, the Indian market opened on a positive note; however, as the day progressed, the indices erased gains and turned negative with Sensex slipping below the 61,000 level. However, support from PSU banks led the index to close marginally above 61,000 and Nifty around 18,150.
"Despite a 4.5% rise in the PSU Bank Index in the last session, there was no let up as today the index led from the front with another stellar performance of almost 4% rise, as the street gave a thumbs up to the second quarter earnings of PSU Banks," said S Ranganathan, Head of Research at LKP securities.
"All eyes are now on the Inflation data expected this week as supply-side issues coupled with domestic demand would play a part given the way retail fuel prices have been behaving," Ranganathan added.
Stocks and sectors
Hindalco Industries, Power Grid Corp, Divis Labs, Tech Mahindra and Grasim Industries were among the top Nifty losers, while gainers were Adani Ports, Coal India, ITC, Dr Reddy’s Labs and Hero MotoCorp.
Among sectors, except Nifty PSU Bank (up 4 percent) and FMCG, all other indices ended in the red with pharma, metal, auto and energy down 0.5-1 percent.
The BSE midcap index shed 0.5 percent and smallcap index down 0.3 percent.
On the BSE, capital goods, auto, oil & gas, healthcare, realty and power indices were down 0.5-1 percent.
Among individual stocks, a volume spike of more than 400 percent was seen in Godrej Properties, Dr Lal PathLab and PI Industries.
A short build-up was seen in Dr Lal PathLabs, MRF and Jubilant FoodWorks, while a long build-up was seen in PI Industries, Bank of Baroda and Punjab National Bank.
On the BSE more than 150 stock touched their 52-week high, including Adani Enterprises, Bank of Baroda, Bharat Forge, Central Bank Of India, Dhanlaxmi Bank, ITC, Kalpataru Power Transmission, Lemon Tree Hotels, PI Industries, RPG Life Sciences and Union Bank Of India.
Outlook for November 10
Rupak De, Senior Technical Analyst at LKP Securities:
Indian Nifty remained volatile with a predominant bearishness on Wednesday's trading. On the higher end, the headline index has found resistance around 18300. The overall trend is expected to remain volatile as long as it remains below 18300.
A decisive move above 18300 may induce a rally towards 18600. However, failure to move beyond 18300 may trigger further profit taking. On the lower end, support is pegged at 18000; below which the index may extend its loss towards 17700.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
For the last couple of sessions, the Nifty is attempting to cross the level of 18200, however it is unable to sustain in the higher territory. The recent higher high in the index on daily chart is not accompanied by higher high in the daily & the hourly momentum indicators. This is a sign of exhaustion in momentum on the upside.
The Nifty is currently trading near the key hourly moving averages, which are near 18100. If that is breached then the index can slide towards 18000, which will be the make or break level for the index from short term perspective.
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