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Taking Stock: Sensex, Nifty end lower dragged by auto, banks; eyes on US Fed meeting –

The market ended lower for the second consecutive day on November 3 amid weak global cues as investors remained cautious ahead of the Fed policy announcement.

After a positive start, the market gave up the gains in the afternoon session and ended lower on the last day of the Samvat 2077 amid selling seen in the auto, banking and pharma names.

At close, the Sensex was down 257.14 points or 0.43% at 59,771.92, and the Nifty was down 59.80 points or 0.33% at 17,829.20.

The stock markets on November 4 will conduct the customary one-hour special Muhurat Trading, between 6.15 pm and 7.15 pm, on the auspicious occasion of Diwali.

This time is beyond the normal trading hours but has been fixed as per the astrologically defined auspicious moments of the day.

However, the stock market will remain shut on November 5 on account of Diwali Balipratipada.

“Markets shed nearly half a percent in a volatile trading session, in continuation to the prevailing consolidation phase. After the initial uptick, the benchmark inched gradually lower. However, it made multiple attempts to recover in the middle but failed,” said Ajit Mishra, VP – Research, Religare Broking.

“Among the factors, the cautiousness ahead of the US Fed meet and weekly expiry kept the participants on their toes,” he added.

The BSE midcap and smallcap indices ended with marginal losses.

L&T, Grasim Industries, UPL, UltraTech Cement and Asian Paints were among the major Nifty gainers. Losers included Sun Pharma, IndusInd Bank, Bharti Airtel, Kotak Mahindra Bank and ICICI Bank.

On the sectoral front, selling was seen in the auto, bank, FMCG and pharma names, while metal and energy indices ended on positive note.

Stocks and sectors

On the BSE, auto and bank indices fell 1 percent each, while capital goods and realty indices gained 2 percent each.

Among individual stocks, a volume spike of more than 200 percent was seen in SBI, L&T and Muthoot Finance.

Long buildup was seen in GSPL, Oberoi Realty and Page Industries, while short buildup was seen in Atul, Aditya Birla Fashion & Retail and Chambal Fertilisers.

More than 200 stocks, including UFO Moviez India, TVS Motor Company, SBI and Sun TV Network, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bearish candle and negated the formation of higher lows of last two sessions.

Nifty has to cross and hold above 18,000 levels for an up move towards 18,150 and 18,350 zones, else it may stuck in between a trading range of 17,600 to 1,8000 zones.

On the downside, support exists at 17,600 and 17,500 levels, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Outlook for November 8

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:

Nifty has entered a corrective phase and is expected to remain under pressure for the short term. Resistance is expected around 18,000-18,100 levels, while we see value around the 17,000-17,200 mark.

Advice traders to keep a check on leverage positions while investors can use deeper correction to accumulate frontline stocks. IT and metals can be accumulated on corrections.

Rohit Singre, Senior Technical Analyst at LKP Securities:

Index again showed profit booking and closed a day at 17829 with loss of nearly half percent & formed a bearish candle on the daily chart for the second consecutive candle.

Index has formed a small consolidation zone of 17,600 on the downside & 18k on the higher side until we don’t see either side breakout.

We may not see a clear direction move. Index is unable to cross its strong zone of 18k mark in last two sessions and until we don’t cross above said levels we may not see good buying, and profit booking can be witnessed towards immediate support zone of 17,750-17,700.

Palak Kothari, Research Associate at Choice Broking:

On the technical front, the index has taken resistance from 21 DMA, which suggests some correction can be seen in upcoming days.

Moreover, the momentum indicator stochastic is witnessed with a negative crossover indicating a downtrend.

The index has settled below the Super Trend indicator indicating further weakness. Also, the index has settled below the Middle Bollinger Band. At present, the index has an immediate support of 17,700 and a resistance of 18,050 levels.

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