Mohit Nigam, Head – PMS, Hem Securities:
On the technical front 17,700 and 18,000 are near term support and resistance in Nifty 50 and for Bank Nifty, 37,680 may act as immediate support while 38,396 is seen as resistance level.
Palak Kothari, Research Associate at Choice Broking:
On the weekly expiry day, the index opened on a negative note and traded with negative bias throughout the sessions, and closed the session at 17764.80 levels with a loss of 133 points. While Bank Nifty closed the session at 37976.25 level with a loss of 65.30 points. On the sectoral front, all closed on a red note while the Nifty Auto and Metal were the top losers.
Technically, the index has given a breakdown of the rising trend line & given closing below 50 DMA, which suggests weakness for the next trading sessions. From the last four trading sessions, the index has been trading with lower highs & lower lows, which points out some corrections for the next trading session.
However, the Index has taken support from the lower band of Bollinger, breaching below can show further downside. Furthermore, the index has given closing below 21 DMA as well as the Stochastic & MACD indicator is trading negative crossover, which points to weakness in the counter for the next trading sessions. At present, the index has a support level of 17650, while resistance is at 18000 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Weak listing of India’s largest IPO and soft global market amid rising inflation woes impacted domestic sentiment. In the context of a weak global market, contraction extended in metal and crude oil prices weighing down the Indian market.
The auto sector was also under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets bounced swiftly from around the 17600 level as that is the lower end of the current range and the short-term support for the Nifty.
If we break that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 17200.
On the upside the resistance is at 18150 and until we do not get past that, the current range-bound movement will continue.
Market Close: Benchmark indices ended lower for the third consecutive session on November 18, with selling seen auto, metal, IT, pharma, realty names.
At close, the Sensex was down 433.05 points or 0.72% at 59,575.28, and the Nifty was down 133.90 points or 0.75% at 17,764.80. About 997 shares have advanced, 2252 shares declined, and 133 shares are unchanged.
SBI, Power Grid Corp, HDFC Bank, IOC and Divis Labs were among major gainers on the Nifty, while losers were Tata Motors, Tech Mahindra, M&M, HCL Technologies and L&T.
All the sectors ended in the red with auto and metal indices lost over 2 percent each. The BSE midcap and smallcap indices fell 1.5 percent each.
Go Fashion IPO subscribed 5.39 times on second day of bidding
The public issue of Go Fashion, which sells women’s bottom-wear under brand Go Colors, has received good response from investors with 5.39 times subscription on November 18, the second day of bidding.
Investors have put in bids for 4.35 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data.
Retail investors have been active from the day one of bidding, buying shares 22.27 times their reserved portion, while the part set aside for non-institutional investors is subscribed 1.77 times so far and that of qualified institutional buyers has seen 1.57 times subscription.
Dollar dips from 16-month highs as rally takes a pause
The dollar slipped back from a 16-month peak on Thursday, losing ground on the euro and Australian and New Zealand dollars as traders assessed whether the U.S. currency’s recent surge was starting to stall.
The dollar has rallied in recent weeks as traders bet on tighter U.S. monetary policy. Stronger-than-expected inflation numbers in the United States last month and punchy retail sales data this week have added to those bets.
And while volatility in FX markets remains low, it is markets’ assessment of global central banks’ differing responses to rising inflation that is driving currencies.
Paytm share price falls over 20% post debut with discount
Paytm operator One 97 Communications share price fell more than 20 percent intraday after a debut with discount.
The share had a moderate listing on the bourses on November 18 as it fell 9 percent on debut.
The stock opened at Rs 1,950 on the National Stock Exchange and the listing price on the BSE was Rs 1,955, against issue price of Rs 2,150.
One 97 Communications was quoting at Rs 1,564.00, down Rs 586.00, or 27.26 percent.
JPMorgan view on Vedanta
Foreign broking firm JPMorgan has kept overweight call on Vedanta with a target at Rs 400 per share.
If the company demerges businesses into separate listed entities, there may be 4 listed companies, however most likely, it could be a de-merger with mirror shareholding of the existing company, it added.
Vedanta was quoting at Rs 308.85, down Rs 29.55, or 8.73 percent.
Oil at six-week low as China readies crude oil reserve release
Oil prices slid to six-week lows on Thursday as China said it was moving to release strategic reserves after a Reuters report that the United States was asking large consuming nations to consider a coordinated stockpile release to lower prices.
The bid by the U.S. to shock markets, asking China to join a coordinated action for the first time, comes as inflationary pressures, partly driven by surging energy prices, start to produce a political backlash, as the world fitfully recovers from the worst health crisis in a century.
Brent crude was down 83 cents, or 1%, to $79.87 a barrel by 0749 GMT, after earlier dropping to $79.28, the lowest since Oct. 7.
Market at 3 PM
Benchmark indices erased some of the intraday losses but still trading in the negative territory with Nifty around 18000 level.
The Sensex was down 207.32 points or 0.35% at 59801.01, and the Nifty was down 88.20 points or 0.49% at 17810.50.About 949 shares have advanced, 2150 shares declined, and 100 shares are unchanged.
SBI, Power Grid Corp, HDFC Bank, IOC and Reliance Industries were among major gainers on the Nifty, while losers were Tata Motors, Tech Mahindra, M&M, HCL Technologies and Tata Steel.
Tech Mahindra acquires digital engineering quality assurance provider Lodestone
Tech Mahindra has acquired Lodestone, a leading digital engineering quality assurance provider for new age digital companies.
The acquisition sets up Tech Mahindra as a leader in the digital engineering space by enhancing its capability to provide end-to-end quality assurance services across hardware, software, and data layers.
Tech Mahindra was quoting at Rs 1,584.00, down Rs 33.90, or 2.10 percent on the BSE.