The Nifty50 snapped its seven-day winning run to close in the red on December 10 below its crucial support placed at 13,500 levels. Traders booked profit after a bull run that pushed the index above 13,500 during the week.
The Nifty50 ended the day 50 points lower at 13,478. The Sensex, the other benchmark, too, declined 143 points to close at 45,959. The broader markets slipped as well. The S&P BSE midcap index fell 0.5 percent while the smallcap index closed lower by 0.65 percent.
Top Nifty gainers were HUL, Britannia Industries, ITC, and Nestle India. Shree Cements, Tata Motors, UltraTech, and UPL were among the biggest losers.
Stocks & sectors
The BSE power and auto indices shed a percent each, while FMCG index added 2.5 percent.
A volume spike of more than 100 percent was seen in Canara Bank, UPL and Pidilite Industries.
Long buildup was seen in ICICI Prudential, Godrej Consumer and Britannia Industries while short buildup was seen in Canara Bank, Cummins and UPL.
More than 200 stocks, including Sintex Industries, MBL Infrastructures and GMR Infrastructure, hit a 52-week high on the BSE.
Here is what experts think that investors should do on December 11:
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
The Nifty took a pit stop on December 10 after running up for the seven consecutive sessions. The index opened on a negative note but found support near 13,400.
The selling pressure was absorbed near the 20-hour moving average and from there, the index attempted recovery towards the end of the session. The hourly chart shows that the Nifty is trading in a rising channel.
The lower channel line coincides with the 40-hour exponential moving average and the hourly lower Bollinger Band near 13,350.
So going ahead, 13,400-13,350 will act as a crucial support zone. The overall outlook continues to be positive with short-term target at 13,700.
Paras Bothra, President of Equity Research, Ashika Stock Broking.
Markets remained muted, tracking a weak trend in other Asian markets as investors kept an eye on Brexit trade talks and stimulus negotiations in the US.
Nomura, however, projected India to be the fastest-growing Asian economy in the calendar year 2021, estimating a 9.9 percent GDP growth.
Among sectors, barring FMCG and metal, other sectoral indices ended lower.
Vinod Nair, Head of Research at Geojit Financial services
After five days of bullish rally, the domestic market reversed along with Asian peers, backed by weak global markets, triggering profit booking across major sectors.
PSU banks, small and midcaps, which were so positive recently, were also under bear attack. European indices are trading positive ahead of the monetary policy announcement by the European Central Bank and the UK and EU setting December 13 deadline to finalise the Brexit deal.
A sell-off was seen in the US tech stocks, which led to a correction in the American market as the stimulus package talks dragged.
With markets at their highest, any unfavourable events, domestic or global, can result in temporary profit booking. However, we believe that the market is optimistic enough to continue the rally post a required consolidation.
Binod Modi, Head Strategy at Reliance Securities.
In our view, improvement in prospects of sustained earnings growth led by encouraging key economic indicators and upbeat management commentaries of different industries is likely help to sustain premium valuations of the market.
However, a broad-based rally across all counters might not sustain for long and men would be separated from the boys in earnings recovery. Hence, investors must focus on quality names with high margins of safety.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
