scorecardresearchMarket Wrap: Sensex, Nifty end lower on profit booking; investors await US midterm result, inflation numbers

Market Wrap: Sensex, Nifty end lower on profit booking; investors await US midterm result, inflation numbers

Updated: 09 Nov 2022, 04:26 PM IST
TL;DR.
Sensex closed 152 points, or 0.25%, lower at 61,033.55 while the Nifty50 closed 46 points, or 0.25%, lower at 18,157.00.
Domestic market snapped two-day winning run on November 9.

Domestic market snapped two-day winning run on November 9.

Indian equities ended lower on November 9, snapping a two-day winning run as investors booked profit in light of weak global cues.

Investors booked some profit awaiting the results of the US midterm elections and inflation numbers.

Sensex opened at 61,304.29 against the previous close of 61,185.15 and touched its intraday high and low of 61,447.23 and 60,905.15 respectively.

The index finally closed 152 points, or 0.25%, lower at 61,033.55 while the Nifty50 closed 46 points, or 0.25%, lower at 18,157.00. Mid and smallcaps also suffered losses as the BSE Midcap index fell 0.52% while the Smallcap index ended 0.33% lower.

ITC, Dr Reddy's Labs and Kotak Mahindra Bank ended as the top gainer stocks in the Sensex index. On the flip side, Power Grid, Tech Mahindra and Sun Pharma ended as the top laggards in the Sensex kitty of stocks.

Among the sectoral indices, BSE Realty, Metal and Consumer Durables fell more than a percent each. Healthcare, Consumer Discretionary, Capital Goods and Power indices fell almost a percent each.

"A major next trigger could be the US CPI inflation, to be announced on November 10. Consensus indicates a moderation to 7.9% in October compared to 8.2% in September. A fast slowdown in inflation would provide the fuel for the market to edge higher, the key problem of 2022," said Vinod Nair, Head of Research at Geojit Financial Services.

On the NSE, the Nifty Bank index hit an all-time high of 41,948.90 in intraday trade and ended 0.23% higher at 41,783.20.

Even though the market ended lower, as many as 188 stocks, including ITC, Punjab National Bank, Bank of Baroda, Britannia Industries, Coal India, UCO Bank and Union Bank of India, hit their 52-week highs in intraday trade.

Crude oil prices dropped amid concerns over weak demand. Benchmark Brent Crude traded near the $95 per barrel mark. The rupee jumped 48 paise to close at 81.43 per dollar.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas expects the rupee to trade with a positive bias due to the rise in risk appetite in global markets and the declining greenback.

"Inflows by foreign investors may also continue to support Rupee. However, traders may remain cautious about the US inflation data. Though crude oil prices have softened, any recovery may cap a sharp upside. The USD-INR spot price is expected to trade in a range of 80.30 to 82.20," said Choudhary.

Technical views by experts

Rupak De, Senior Technical Analyst at LKP Securities pointed out that on the higher end, the headline index has found resistance around 18,300.

"The overall trend is expected to remain volatile as long as it remains below 18,300. A decisive move above 18,300 may induce a rally towards 18,600. However, failure to move beyond 18,300 may trigger further profit-taking. On the lower end, support is pegged at 18,000, below which, the index may extend its loss towards 17,700," said De.

Mohit Nigam, Fund Manager & Head - PMS, Hem Securities said the key resistance level for Nifty50 is 18,250, and on the downside, 17,900 can act as strong support. Key resistance and support levels for Bank Nifty are 41,950 and 41,200 respectively.

Key market data

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 09 Nov 2022, 03:34 PM IST