scorecardresearchMarket Wrap: Sensex, Nifty snap 3-day losing run; PSU banks shine

Market Wrap: Sensex, Nifty snap 3-day losing run; PSU banks shine

Updated: 22 Nov 2022, 04:09 PM IST
TL;DR.
Sensex closed at 61,418.96, up 274 points, or 0.45%. The NIfty50 ended the day at 18,244.20, up 84 points, or 0.46%.
Sensex, Nifty snapped three-day losing run.

Sensex, Nifty snapped three-day losing run.

Equity benchmarks snapped a three-day losing run to end higher on November 22 amid mixed global cues.

Investors accumulated stocks after the fresh dip even as headwinds in terms of rate hikes, recession in the US, rich valuation of the domestic market, Covid cases in China and geopolitical concerns persist.

Some analysts believe as the November month F&O expiry day is near, short covering seems to have rescued the market.

Sensex opened at 61,126.56 against the previous close of 61,144.84 and touched the intraday high and low of 61,466.63 and 61,073.68 respectively.

The index finally closed at 61,418.96, up 274 points, or 0.45%. The NIfty50 ended the day at 18,244.20, up 84 points, or 0.46%.

"Overall, we believe that Indian markets are trading in a positive trend backed by strong corporate earnings, easing supply constraints, cooling commodity prices and strong demand across various sectors. Investors should use any significant dip as a strong opportunity to buy in these markets," said Mohit Nigam, Fund Manager & Head - PMS, Hem Securities.

Only five stocks - Nestle, Bharti Airtel, Power Grid, HDFC Bank and Kotak Mahindra Bank - ended in the red in the 30-share pack Sensex.

Stocks of IndusInd Bank, NTPC, UltraTech Cement, Titan and Infosys ended as the top gainers in the Sensex kitty of stocks.

The BSE Midcap index rose 0.48%, in sync with the benchmark Sensex but the Smallcap index faltered and closed with a mild loss of 0.10%.

The market witnessed buying in most sectors. On the NSE, all sectoral indices ended in the green barring Nifty Realty.

PSU bank stocks continued their bullish run. The Nifty PSU Bank index closed 1.66% higher with UCO Bank, Bank of India and Bank of Baroda as the top gainers. The Nifty Bank index closed with a slim gain of 0.26%.

Nifty Realty index, on the other hand, ended 1.22% lower with most components in the red. Indiabulls Real Estate, Macrotech Developers, Phoenix Mills and Brigade Enterprises ended as the top laggards in the realty pack.

Some 121 stocks, including Bharti Airtel, Punjab National Bank, Bank of Maharashtra, Jammu & Kashmir Bank, Indian Overseas Bank, Indian Bank, Central Bank of India, Canara Bank, Bank of India and Escorts Kubota, hit their 52-week highs in intraday trade on BSE.

However, 89 stocks, including Bandhan Bank, Indigo Paints, Mphasis, Paytm and Sanofi India, hit their 52-week lows.

"After three days of risk aversion, the domestic market experienced a relief rally in response to a bullish trend in global markets. However, the tight Covid lockdown in China has negatively impacted the forecast for global growth. FII interest has also reduced significantly due to the increased likelihood of stricter Fed policies," said Vinod Nair, Head of Research at Geojit Financial Services.

Crude oil prices saw an uptick after the dollar eased. Benchmark Brent Crude traded above the $85 per barrel mark. The rupee rose 18 paise to close at 81.67 per dollar.

Technical view by experts

Shrikant Chouhan, Head of Equity Research ( Retail), Kotak Securities pointed out that after a three-day price correction, the Nifty found support around 18,150 and also formed a small bullish candle on daily charts.

"The 10-day SMA (simple moving average) of 18,272 would be the immediate hurdle for bulls. Above the 10-day SMA level, the index could move to 18,370 and further upside could lift it to 18,420," said Chouhan.

Rupak De, Senior Technical Analyst at LKP Securities pointed out that a bullish harami pattern on the daily chart suggests a recovery in the term.

"The trend looks sideways to positive. Going forward, 18,200 may provide immediate support below which the index may drift down towards 18,100. On the higher end, resistance is visible at 18,300/18,450," said De.

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: 22 Nov 2022, 03:34 PM IST