Share Market Highlights: Sensex ends 195 pts lower at 57,064, Nifty gives up 17000 on closing bell

Domestic benchmark indices closed with losses on Tuesday. Midcap, small-cap indices outperformed. India VIX closed above 21 levels.

Sensex and Nifty were down in red ahead of the closing bell. Sensex was down more than 200 points threatening to give up 57,000 mark.

Sensex and Nifty were up with gains on Tuesday afternoon, bouncing back from intra-day lows. S&P BSE Sensex was up more than 200 points above 57,500 while Nifty 50 regained 17100. Broader markets were outperforming Sensex and Nifty as most smallcap and midcap indices rallied. While benchmark indices moved higher, as many as 148 scrips traded at their respective 52-week highs while 20 were at their 52-week lows. Meanwhile, on NSE, 48 stocks were seen trading at their 52-week highs while 25 were down near their lows.

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Sensex and Nifty extended gains on Tuesday after initially having slipped into the red. Sensex was above 300 points while NSE Nifty 50 was above 17100.

Yesterday’s bounce back evolved on anticipated lines, turning just shy of the 17177 objective that we had laid out for such bounce. We expect similar turn lower from 17280 as well, but it is likely to be brief and it might require a push into the 17280- 450 region before the 16500 move is brought back into discussion. Until then, the favoured view will retain an upside bias.

~ Geojit Financial Services

"Incorporated in 2010, Go Fashion (India) Limited is one of the largest women's bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women's bottom-wear products under the brand, 'Go Colors'. We had recommended SUBSCRIBE On the Go Fashion (India) IPO. The Stock is up ~78% from the higher end of the price band. At CMP Of Rs1,226, the stock is trading at 52x EV/EBITDA (FY20) which leaves little room for upside. Hence, we recommend to book profits," said Amarjeet Maurya, AVP - Mid Caps, Angel One.

Global brokerage and research firm Jefferies has picked ICICI Bank, HDFC, and Tata Motors as some of the stocks that may gain 30% or more. Domestic markets have slipped nearly 8% from their all-time highs as global inflation and new covid-19 variant takes centre stage while central banks across the globe talk about rolling back stimulus. Earlier last month Jefferies had turned defensive on India saying that Nifty may not outperform significantly beyond current levels. Since then, Dalal Street benchmarks have corrected moderately.  Here are the stocks that Jefferies believe can rally.

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Sensex and Nifty bounced back swiftly from lows and turned green again. Sensex was up 20 points while Nifty added 3 points. 

Sensex and Nifty gave up morning gains to turn red. Sensex was down nearly 200 points while Nifty 50 was struggling to hold 17000.

Bank Nifty was up 1.5% on Tuesday sitting near 36,500 levels. The index was led by RBL Bank and Bandhan Bank, both up 4% each.

"Upon opening, the market has bounced today. Whether it is short covering or a dead cat bounce is still to be ascertained. The markets are still in negative territory and unless we do not close above 17500 on the Nifty, the short-term trend does not change," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Go Fashion (India) shares listed on the stock exchanges today at a sharp premium amid bullish market momentum. Go Fashion stocks opened for trade at Rs 1,316 per share, up Rs 626 apiece or 90.72% from the upper end of the IPO price band of Rs 655-690 per share. 

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Power Grid was the top Sensex gainer, up 3.5%, followed by Titan, State Bank of India, and Bajaj Finance.

Domestic benchmark indices started Tuesday’s trade in the positive territory. Bank Nifty was up 0.5% while India VIX was down 6%.

"A Doji candle on daily charts + bullish divergence on the hourly charts indicate a decent bounce back on the cards. If we managed to stay above 17000, we should see 17300/17500 soon. Alternatively, if 16950 is broken then we may see another round of down-move until 16,700," said Rahul Sharma, Director & Head Research, JM Financial.

Sensex and Nifty were down with negative bias on Tuesday morning ahead of the opening bell. Nifty was holding above 17000.

Nifty finds support around 16800 while 17300 will act as resistance. Bank Nifty finds support around 35450 while 36800 will act as resistance on the upside.

~ IIFL Securities

"Nifty futures witnessed flat OI activity while Bank Nifty futures saw short covering of around 9%. Options concentration is seen at 17000 Puts and 17300/17500 Calls," said Rahul Sharma, Director & Head - Research, JM Financial.

Nifty is likely to open on a flat note tracking mixed Asian cues. We expect volatility to remain high with key support around 16900 amid oversold placement of weekly stochastic oscillator (placed at 12). Hence, use dips towards 16920-16952 for creating long position for target of 17033.

~ ICICI Direct

Sensex trades with gains in pre-open session while Nifty 50 was below the 17000 mark.

"On the technical front, the key resistance levels for Nifty 50 are 17215 followed by 17380 and on the downside 16840 followed by 16620 can act as strong support. Key resistance and support levels for Bank Nifty are 36440 and 35420 respectively," said Mohit Nigam, Head - PMS, Hem Securities.

For Nifty, the immediate resistance is seen in the range of 17200 – 17300 and with a slightly broader view, till the time we do not move beyond 17600, we are not out of the woods yet. On the flipside, today’s low around 16800 would be seen as a key support. We still reiterate that traders should avoid getting carried away by in between rebounds as we expect the continuation of the corrective move for a while.
~ Sameet Chavan, Chief Analyst - Technical & Derivatives at Angel One

After touching a record high on 18th Oct'21, the Nifty has corrected 8% so far, led by various global factors (Fed's taper announcement, rising bond yields, higher crude oil prices, and strengthening of the US Dollar Index) and detection of a new COVID-19 variant - Omicron - in South Africa. A big fundraise in the primary market also put some pressure on the secondary market. Sentiments were battered globally, with global markets correcting by 2-3%, bond yields easing, and Brent Crude prices plunging by 11%. India's VIX rallied 25% to 20.8. Since these are early days for the new variant, limited information regarding its transmission and impact is available. We expect the Centre/ state governments to remain proactive, given their experience from the second COVID wave in Apr-May’21, and guidelines to evolve as the trajectory of the new variant becomes clearer. We expect the market to witness elevated volatility in the near term. However, valuations after the pullback, are relatively reasonable now at 23.3x/19.5x FY22E/FY23E Nifty EPS. Hence we would advise investors to buy into this correction.

~ Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

SGX Nifty was trading with gains during the early hours of Tuesday, hinting at a flat to a positive start to the day’s trade. On the charts, Dalal Street benchmark indices still look weak but some pullback has not been ruled out. “The down-trend status in Nifty is still alive and the minor pullback rally is expected in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “At the higher levels 17200-17300 is going to be a strong overhead resistance and expected to be a sell on rise opportunity in the market. The next lower supports to be watched at 16780 levels,” he added.

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"Nifty closed on Nov 29 with a long-legged doji suggesting possible reversal of the latest downmove. The low of the day i.e. 16782 will be a crucial level to watch out for on the downside, while on the upside 17280 could offer resistance," said Deepak Jasani, Head of Retail Research, HDFC Securities.

SGX Nifty was up in the green on Tuesday morning. Nifty Futures trading with gains, hints at positive start to the day's trade.

A more broad-based growth recovery amid contained infections and faster vaccination bodes well for India’s recovery prospects next year. In fact, upcoming GDP data for Q2FY22 (our forecast: 9.5% y/y) is likely to reaffirm that the economy is on the mend and will likely be back to pre-pandemic levels before end-March 2022. We believe India can grow at another 8% in FY23 after expanding at an estimated 9.5% in the current financial year.

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