Nifty holds above 18000, Sensex ends in red; here’s what to expect from markets on F&O expiry day

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November 10, 2021 3:57 PM

On the back of subdued global cues and persistent selling by foreign funds, BSE Sensex and Nifty 50 ended marginally lower on Wednesday

sensex, nifty, stock marketNifty had a another day of sideways movement. Image: Reuters

On the back of subdued global cues and persistent selling by foreign funds, BSE Sensex and Nifty 50 ended marginally lower on Wednesday. BSE Sensex fell 80 points to 60352, while NSE Nifty ended above 18000, at 18017. Index heavyweights such as HDFC Bank, ICICI Bank, Hindustan Unilever Ltd (HUL), Tata Steel, Kotak Mahindra Bank contributed the most to the indices loss. BSE Midacp index underperformed BSE Sensex, falling over half a per cent or 132 points to 26,388. BSE SmallCap ended flat with a negative bias at 29317. India VIX, the volatility index, gained 2 per cent to settle at 16.31 levels. For Nifty 50, analysts say that 18200 will act as strong resistance while on the downside supports are placed near 17,750-17,800 levels.

Vinod Nair, Head of Research at Geojit Financial Services

Broadly, domestic market continued to trade negative after a disappointing opening as inflation worries affected the global markets. However, the market trend was mixed on stock to stock basis. China’s CPI rose 1.5% YoY, while the producer price index rose by 13.5% YoY owing to imported inflation and domestic supply shortages. Globally investors are awaiting the release of the US inflation data due later today, which is expected to continue at peak levels.

S Hariharan, Head- Sales Trading, Emkay Global Financial Services

Market sentiment has been somewhat weaker with respect to institutional flows over the last week – FIIs have been net sellers worth Rs 4000 crs in cash segment and Rs 2500 crs in stock future sin Nov so far. Retail long leverage through stock futs continues to be very strong – net long open interest is up to $14 bn, which is a life high. Exuberant participation in primary issuances and high leverage, combined with peaking of earnings upgrade cycle, poses a major risk in the near-term for broader markets. Auto sector has been benefiting from cooling off of metals prices, which have acted a headwind to margins, as well as a cut in fuel excise duties. Pharma sector faces price erosion headwinds in US market and can be a likely under-performer going ahead.

Vikas Jain, Senior Research Analyst at Reliance Securities

We expect markets to trade volatile with respect to the weekly expiry as long positions have witnessed unwinding in banking and realty sectors. .Profit booking was visible in a few names post the quarterly results from India Cement, Strides Pharma and Bank of Baroda during the day. On the higher side 18,200 will act as strong resistance while on the downside supports are placed near 17,750-17,800 levels.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Nifty had a another day of sideways movement. Today again it took resistance at its 20 period moving average. It closed at 18012 after making a low of 17915. Nifty has resistance in 18050-18100 range and support at 17800 and 17650 levels. Traders are suggested not to initiate new longs till the time nifty closes above 18100 with higher than average volumes.

Rohit Singre, Senior Technical Analyst, LKP Securities

Index opened a day with a gap down but at the end, the index managed to close a day again above 18k mark with mild loss. The index has formed a support zone around 17970-17920 zone if managed to hold above-said levels we may see some swift bounce incoming session but if failed to hold then we may see more drag down towards 17700-17600 zone which are dip supports for index and good hurdle for nifty is formed near 18100-18200 zone overall range is still in coming in between 17600-18300 zone

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