The Indian markets charged with high volatility on Tuesday closed on a negative note, as the Sensex slumped around 200 points, while the Nifty50 fell below the 17000-mark for the first time in three months. 

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The weakness in the market was mainly led by metal, auto, banks and financial services, while IT, pharma and FMCG indices defied the market sentiment to end in the green on Tuesday.  

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While the broader markets outperformed the benchmarks as mid-cap gained marginally by 0.46 per cent, while the small-cap jumped 1.6 per cent at the close. 

Of 50 scrips on Nifty, 21 advanced and 29 declined at the market close. Tata Steel closed as top loser, down over 4 per cent, followed by Kotak Bank down by over 3 per cent. On the contrary, Power Grid become the top gainer, up around 3 per cent, followed by Titan up over 2 per cent.  

S Ranganathan, Head of Research at LKP securities said, “In a highly volatile trading day, the street began on a very positive note on expectations of record GST numbers for November in line with the trends shown by e-way bills.” 

“However, post the views of the Moderna CEO on the Omicron Variant, markets witnessed selling pressure. While key data points for November like the Auto numbers were seen playing out, profit-booking by FPI kept investors watchful,” Ranganathan added. 

“Tracking positive closure of the US and European markets, domestic indices started the session on a strong footing following the US President’s announcement ensuring that economic lockdowns are currently off the table,” Vinod Nair, Head of Research at Geojit Financial Services said. 

The optimism was quickly substituted with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts’ advice to be cautious, he added.  

Yash Gupta, Equity Research Associate, Angel One pointed out, “We expect volatility to continue this week in the market and we suggest traders keep stop loss and long investors to buy in small quantities and distribute their buying in 3-4 tranches.” 

WHO has also listed the Omicron virus in the list of “Virus of concern” as initial data suggests that it is more transmutable, Gupta added in his post market comment on Tuesday. 

“On a daily Chart, the Index has formed a bearish candle which suggests weakness for the next trading sessions, and has given closing below 21 & 9DMA which points out bears are active, Palak Kothari Research Associate Choice Broking said in a post market comment on Tuesday. 

“At present, the Nifty has immediate support at 16800 breaching below the same can show 16600-16500 levels while resistance comes at 17350 levels. On the other hand, Bank nifty has support at 35300 levels while resistance at 37000 levels.” Kothari further added in a note.  

Naveen Kulkarni, Chief Investment Officer, Axis Securities said, “India VIX in the domestic market was around 17-18 levels during most of November, indicating limited market downside. Currently, VIX trading around 21 levels signifies a rise in cautiousness, as compared to the previous week.” 

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)