Sensex, Nifty plunge after IIP shocker; here’s what may lead to volatility going ahead

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Updated: November 13, 2019 4:21:13 PM

The benchmark equity indices -- Sensex and Nifty -- on Wednesday ended the intraday trade on a negative note after factory output recorded the lowest growth in the last 81 months, GDP growth concerns and the falling rupee.

Share Market Live, Stock Market Live, Nifty Live, stock market news in hindi, NSE live, BSE live, Live Market Update, Market Today, स्टॉक मार्केट, शेयर बाजार, Indian Share Market Live, Indian Stock Market LiveWhile Sensex ended at 40,116.06, down 229.02 points, or 0.57 per cent, Nifty closed at 11,840.45, down 73 points, or 0.61 per cent.

The benchmark equity indices  — Sensex and Nifty — on Wednesday ended the intraday trade on a negative note after factory output recorded the lowest growth in the last 81 months, GDP growth concerns and the falling rupee. While Sensex ended at 40,116.06, down 229.02 points, or 0.57 per cent, Nifty closed at 11,840.45, down 73 points, or 0.61 per cent. The Nifty Media index shed the most, down 4.5 percent, followed by the Nifty PSU Bank, down 3.1 percent. Among stocks, Britannia, TCS, Reliance Industries Ltd, Nestle, and Bajaj Finserv were the top gainers on the Nifty50, while Yes Bank, GAIL, Zee, Adani Ports and Grasim led the losses.

“Going forward, we continue to maintain our cautious stance on Indian markets as weak domestic growth and uncertain global cues is likely to weigh in on sentiments. The last leg of earnings announcement is also expected to induce volatility into the markets. Further, the release of CPI data scheduled today would also be on investor’s radar,” Ajit Mishra Vice President, Research, Religare Broking said.

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“Bears managed to pierce the support zone of 11,850. We have been mentioning about near term correction on the index especially below the support of 11,850. Index is likely to witness further profit booking. Nifty is likely to test the next support zone of 11,700. Broader uptrend remains intact and markets currently are seeing a phase of consolidation which we had anticipated and mentioned in our last reports,” said Amit Shah, Technical Research Analyst, Indiabulls Ventures.

The brent crude futures, the global oil benchmark, fell 1.22 per cent to USD 61.30 per barrel. “The markets had seen a spurt on Monday solely on the back of short-covering. Apart from that, the markets continue to remain technically weak and the levels of 12000-12100 continue to remain a strong resistance for the near term. This zone has become an intermediate top for the market and unless these levels are taken out, we will continue to see NIFTY remaining vulnerable at higher levels. On the higher term charts, the NIFTY continues to face bearish divergence from the lead indicators. This formation also needs to get resolved if the markets have to see any sustainable up move.” Milan Vaishnav, CMT, MSTA told Financial Express Online.

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