Taking Stock | Bears Maul The Market As Sensex Dives 1,170 Points, Nifty Slips Below 17,500
If the Nifty remains below 17,500, weakness may stretch towards 17,250 and 17,000, Chandan Taparia of Motilal Oswal Financial Services has said
Taking Stock | Bears Maul The Market As Sensex Dives 1,170 Points, Nifty Slips Below 17,500
If the Nifty remains below 17,500, weakness may stretch towards 17,250 and 17,000, Chandan Taparia of Motilal Oswal Financial Services has said
Ajit Mishra, VP – Research, Religare Broking:
Markets started the week with a sharp cut and lost nearly two percent, tracking weak cues. Initially, the news of the Reliance-Armanco deal cancellation didn’t go well with the participants and sentiment further deteriorated with a continuous decline in the banking heavyweights which cascaded to other sectors as well. Among the benchmark indices, Nifty settled at 17416.55 levels; down by 1.96%.
Participants were already in a cautious mood, citing the feeble global cues like US inflation concern and the rise in the COVID cases and the recent domestic developments have further soured the sentiment. Indications are pointing towards further slide in the Nifty and the next major support is at 17,100 zone. Participants should align their positions accordingly while keeping a check on leveraged positions.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty opened on a positive note only to face a fresh round of selling near 17800. Thereon the selling pressure aggravated as the day progressed. As a result, the Nifty breached the swing low of 17613 & tumbled down sharply.
On the downside, it tested lower end of a falling channel, which was near 17300. The selling pressure was absorbed near the lower channel line from where the bulls got some breathing space towards the end of the session. As a result of the steep decline, the hourly momentum indicator has been pushed into the oversold zone & has developed a positive divergence over there. Thus unless today’s low of 17280 breaks, the Nifty can attempt a bounce to test its key hourly moving averages near 17700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
There was wide-spread selling in the market and the Sensex crashed over 1,600 points intra-day, which shows temporary hiccups could be seen in near term. Benchmark Nifty opened below the 50-day SMA and quickly broke the 17700 support level.
On daily charts, the Nifty has formed a long bearish candle which is broadly negative. In the last five days, the market corrected over 900 points and hence there could be a possibility of a quick pull-back rally.
For day traders, 17350 would be the immediate intraday support level, and above the same a pullback rally may continue up to 17550-17600 levels. On the flip side, dismissal of 17350 could trigger one more round of correction till 17300-17240.
Mohit Nigam, Head – PMS, Hem Securities:
Markets ended the day with the corrections of nearly 2%. The day had many negative news which pushed for the correction. The latest debutant PayTM corrected further by trading 40% below its IPO price, weakening the investor sentiment.
The Nifty50 would take support at 17,200 while a mild resistance at 17,500. Though Bank Nifty is showing support at 36,700 and resistance at 38,300. The current correction is giving a good opportunity to all investors for a fresh investment in the markets.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets opened on a negative despite mixed Asian market cues as China on Monday kept the one-year Loan Prime Rate (LPR) unchanged. During the afternoon session markets further drifted lower and traded at day’s low amid resurgence of coronavirus outbreaks in Europe and some other regions.
Also, adding to growing speculation traders feared that central banks could have to tighten monetary policy quicker to tame a spike in inflation.
Traders’ sentiments were impacted as foreign institutional investors (FIIs) continued to remain net sellers in the capital market. On sectoral front, almost all the indices were trading in red today.
Vinod Nair, Head of Research at Geojit Financial Services:
Subdued listing & continuation of weak trading of Paytm, India’s largest new generation fintech, is a big sentimental setback to the domestic market, which was thriving on the strong primary market. It will impact the inflow of money from the retail segment, which has been a key player during the year.
FIIs are also a seller due to fear of overvaluation of India compared to peers. Weak inflow from FIIs will possibly get higher due to the withdrawal of three agriculture farm acts which brings a stoppage to governments reformist agendas in context to coming state elections next year. It was a key factor for India to trade at a premium to EMs during the year.
Sachin Gupta, AVP, Research at Choice Broking:
There was a bloodbath in the market since the opening on Monday session; the benchmark index crashed almost 2% or 348 points in a day to close at 17416.55 levels while Bank Nifty fell by 2.5% to settle at 37128.80 levels. All the sectoral indices were in red led by Nifty realty, media, PSU bank & auto with almost 4% fall.
Technically, the Nifty index has confirmed Head & Shoulder Pattern breakdown on the daily chart and moved down from the neckline. Moreover, the index has also sustained below Lower Bollinger Band formation, which indicates a bearish trend for the coming day.
Furthermore, Stochastic & MACD has also witnessed a negative crossover on the daily timeframe, which suggests a bearish move in the index.
The Nifty has immediate support at 17,200 levels while resistance at 17,650 levels. On the other hand, Bank Nifty has support at 36300 levels and resistance at 38500 levels.
S Ranganathan, Head of Research at LKP securities:
Finally the bears got their act together after a long wait as a series of events over the weekend gave them the upper hand with almost all the sectoral indices barring the metal index plunging today.
The repeal of the agriculture laws had an impact on the PSU stocks while the O2C deal not going through left a 4.5% cut on Reliance.
Even as IPO investors come to terms with the reality, the inflationary impact on demand across several sectors continues to worry the street.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets broke 17600 and as expected saw a sharp move southward! 17200 is a support for the market and we came close to it and bounced thereafter.
The short-term trend has definitely been disrupted. If we continue this momentum, we can slide further to 16,850. The upside is now capped at 18,150-18,200 and until that is not crossed, we will be in a negative trend.
Market Close: Benchmark indices fell 2 percent on November 22 amid weak global cues on the back inflation worries.
At Close, the Sensex was down 1,170.12 points or 1.96% at 58,465.89, and the Nifty was down 348.30 points or 1.96% at 17,416.50. About 842 shares have advanced, 2479 shares declined, and 157 shares are unchanged.
Bajaj Finance, Bajaj Finserv, ONGC, Tata Motors and Reliance Industries were among major losers on the Nifty, while gainers included Bharti Airtel, Asian Paints, JSW Steel, Power Grid and Hindalco Industries.
All the sectoral indices ended in the red with realty, healthcare, auto, oil & gas, and the PSU bank indices down 2-4 percent. BSE midcap and smallcap are down 2-3 percent.
