Taking Stock: Market ends marginally lower; auto stocks gains, mid, smallcaps outshine

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Stock Market Today

After two days of gains, the market saw profit-booking on November 9 with both benchmark indices closing with losses on dull global cues.

The Sensex was down 112.16 points, or 0.19 percent, at 60,433.45 and the Nifty ended 24.20 points, or 0.13 percent, down at 18,044.30.

After a quiet start, the market witnessed volatility but narrowed losses in the final hour of trading supported by auto, oil & gas and capital goods stocks.

“After a positive opening, the domestic market traded lower, as private banking stocks were under pressure following dull global markets,” said Vinod Nair, Head of Research at Geojit Financial Services.

However, auto, public sector banks (PSBs) and consumer durables climbed against the market trend, with small and mid-cap stocks outperforming.

“Despite the passage of the long-awaited infrastructure bill, the gains in the US market were capped as investors cautiously awaited the US inflation data,” he said.

The BSE midcap index was up 0.8 percent and smallcap index rose 0.67 percent.

M&M, Tata Motors, Hero MotoCorp, ONGC and SBI were among the major Nifty gainers. Losers included Britannia Industries, HDFC Bank, Maruti Suzuki, JSW Steel and Power Grid.

Among sectors, the Nifty Auto index rose a percent, while selling was seen in metal and banking names.

Stocks and sectors

On the BSE, auto and capital goods indices added a percent each, while the metal index slipped nearly a percent.

Among individual stocks, a volume spike of more than 300 percent was seen in TVS Motor, Birlasoft and M&M.

Long buildup was seen in Birlasoft, TVS Motor and M&M, while short buildup was seen in Britannia Industries, SBI Cards and Shriram Transport Finance Corporation.

More than 200 stocks, including Sintex Industries, IOC, Ashok Leyland and Sobha, hit a 52-week high on the BSE.

Technical View

The Nifty formed a small-bodied bearish candle on the daily scale. It has been forming higher highs from the last two sessions.

The index has to hold above 18,000 for an up move towards 18,150 and 18,350 zones. On the downside, the index has major support at 17,850 and 17,777, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Outlook for November 10

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty has closed above 18,000, which is a positive sign. However, it is still indecisive and faces resistance at higher levels.

If it can sustain these levels, the index can move higher to 18,400 and then 18,600.

We have good support at 17,600, hence long positions can be accumulated for higher targets.

Rohit Singre, Senior Technical Analyst, LKP Securities

The 18,000-mark will act as support and if the index manages to hold above it, the next move can be expected towards 18,200-18,300.

The overall structure is still positive; buy on the dip.

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

On the downside, 18,000–17,950, as expected, acted as a near-term cushion. The key hourly moving averages also offered support on the downside. As long as the Nifty trades above 18,000–17,950, it can take a leap on the upside.

Structurally, the index is expected to go for deep retracement of the entire decline from 18,604 to 17,613. So, it can march towards the 61.8 percent and 78.6 percent retracement mark, which are at 18,225 and 18,392, respectively.

Rahul Sharma, Co-Founder, Equity99

On November 10, 18,000 will act as crucial support, a break of which may see the Nifty slide to 17,875. If 17,875 is also broken, the next support is around 17,750.

On the upper side, 18,110 will act as crucial resistance for the Nifty, a break of which can take the index to 18,175. If the Nifty manages to go past this level as well, then it may go up to 18,250.

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.