Index heavyweights force Sensex to close deep in red, Nifty needs to cross 18060 for upside breakout

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November 16, 2021 4:13 PM

S&P BSE Sensex slipped 396 points or 0.65% to close at 60,322 points while Nifty 50 index dropped 0.61% to settle at 17,999.

Nifty 50Broader markets mirrored the fall, except smallcap indices as Nifty Smallcap 50 gained 0.58%. (Image: REUTERS)

Bears took over Dalal Street in the dying hour of trade on Tuesday, forcing Sensex and Nifty to close with losses. S&P BSE Sensex slipped 396 points or 0.65% to close at 60,322 points while Nifty 50 index dropped 0.61% to settle at 17,999. Reliance Industries Limited was the worst performing stock on Sensex, falling 3.17%, followed by State Bank of India, and Ultratech Cement. Maruti Suzuki India was up 7.32% as the top gainer on Sensex, followed by Mahindra & Mahindra, Tech Mahindra, and Infosys. Bank Nifty index fell 1% to end at 38,300. Broader markets mirrored the fall, except smallcap indices as Nifty Smallcap 50 gained 0.58%. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –

“Hectic selling in late trades in banking, oil & gas, realty stocks weighed heavily on benchmark indices as higher inflation remains a key concern for markets. On intraday charts, the Nifty has formed a lower top formation which is broadly negative. For day traders, 18060 would be the immediate resistance level, and if the index slips below the same, the correction wave could continue up to 17900-17830 levels. On the other hand, 18060 would be the key intraday breakout level for the bulls, and above the same the index could move up to 18100-181235 levels.”

Palak Kothari, Research Associate, Choice Broking –

“Technically, the index has formed a bearish candle on the daily time frame, which shows weakness in the counter. On the hourly chart, the index has been trading with lower highs lower lows, which point out some corrections for the next trading session. Furthermore, the index has given closing below 21 DMA as well as the Stochastic 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 17800, while resistance is at 18250 levels.”

Mohit Nigam, Head – PMS, Hem Securities –

“On the technical front, markets are trading around the key support zone of ~18000 levels and if it sustains above this level for a few more sessions, we can see a good up move in the near term. Immediate support and resistance in Nifty 50 is 17850 and 18250 respectively.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

“Nifty is unable to sustain at higher levels. It made a bearish bar today. It closed at 19990, down by 120 points. It has support in 17950-17850 range and resistance in 18100-18200 range. Traders are suggested not to initiate new long positions till we see a closing above 18200 with higher-than-average volumes.” 

Vinod Nair, Head of Research at Geojit Financial Services

“The domestic market started trading between gains and losses before slipping into deep red with heavy selling in banking and pharma stocks. RBI’s statement that equity market valuations is stretched added to the pressure, however Mid & Smallcaps outperformed. Global markets remained mixed as the Biden-Xi meeting ended with both the parties appealing for more cooperation. European and US markets are trading almost flat ahead of the release of Eurozone Q3 GDP and US retail sales data.”

S Ranganathan, Head of Research at LKP securities

“As Investors try to figure out the valuation disconnect between the recently listed Digital entities versus their traditional counterparts who built distribution reach offline, the euphoria around the former seems to have set minds thinking. As the street worries on inflationary pressures leading to companies raising prices and their consequent impact on demand, we saw a highly volatile trading session today. The Auto sector though bucked the trend with Auto OEMs seeing good buying interest on reports of easing in chip and semiconductor shortages with the Auto Index up 3% in Afternoon Trade.”

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