The Indian benchmark indices snapped two-day gaining momentum and ended lower in a volatile session on October 31, with Nifty below 19,100 amid selling across the sectors, barring realty.
At close, the Sensex was down 237.72 points or 0.37 percent at 63,874.93, and the Nifty was down 61.30 points or 0.32 percent at 19,079.60.
After a positive start, the indices gave up the opening gains and turned negative in the initial hours and extended the losses. Meanwhile, amid volatility, the market ended near the day’s low.
Stocks and sectors
Biggest loser on the Nifty were M&M, Sun Pharma, Eicher Motors, LTIMindtree and ONGC, while gainers included SBI Life Insurance, Titan Company, HDFC Life, Kotak Mahindra Bank and Asian Paints.
Except realty, all other sectoral indices ended in the red with auto, bank and healthcare down 0.3-0.6 percent.
The BSE midcap index rose 0.3 percent, while smallcap index ended flat.
A long build-up was seen in Pidilite Industries, Power Finance Corporation and SBI LIfe Insurance, while a short build-up was seen in Siemens, Muthoot Finance and Sun Pharma.
Among individual stocks, a volume spike of more than 400 percent was seen in Pidilite Industries, Sun Pharma and Siemens.
More than 150 stocks touched their 52-week high on the BSE including KPIT Technologies, Solar Industries, Motilal Oswal, Persistent Systems, Angel One, Blue Star, Canara Bank, TVS Motor, Swan Energy, CreditAccess Grameen. Click here for the full list
Outlook for November 1
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Weak Asian market cues saw key benchmark indices languish in negative territory for a major part of the trading session amid selling in banking, auto and IT stocks. Even as India has somewhat managed to shrug off global challenges amid strong growth numbers, persistent FII selling has caused local markets to falter over the past month or so.
We may see a mixed trend for markets in the near to medium term. On daily charts, the Nifty has formed a bearish candle indicating further weakness from the current levels. We are of the view that the market is likely to consolidate within the range of 18980 to 19220. However, below 18980, traders may prefer to exit out from long positions.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty opened on a positive note however it could not capitalize on the gains and slipped in to the red and ultimately closed the day on a negative note down ~61 points. On the daily charts we can observe that Nifty has faced resistance at the 19160 – 19220 zone. Now until today’s high of 19234 is not taken out, we can expect the Nifty to trade with a negative bias.
The hourly momentum indicator has a triggered a negative crossover from above the equilibrium line indicating that the pullback has matured, and a new cycle has begun. The fall shall intensify once the low of 18940 is breached on the downside and should also be used as a stopples for the long positions. Overall, the pullback seems to have hit hurdles and now the next leg of the fall may resume.
Bank Nifty also witnessed a gap up opening however it could not sustain at higher levels and closed in the red down ~190 points. The relief rally is likely to be over as the hourly momentum indicator has triggered a negative crossover from above the equilibrium line indicating that it has started a new cycle which can lead to a slide in the Bank Nifty till 42400 and below that till 42000.
Source Link: Taking Stock: Market snaps 2-day gains; ends near day’s low amid volatility