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Updated on: Monday, November 22, 2021, 05:17 PM IST

Carnage on Dalal Street as Sensex crashes over 1,100 points on all-round selling; Realty index tanks 4%

All the sectoral indices ended in the red with realty, healthcare, auto, oil & gas, and the PSU bank indices down 2-4 percent. |

All the sectoral indices ended in the red with realty, healthcare, auto, oil & gas, and the PSU bank indices down 2-4 percent. |

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The benchmark indices crashed on the bourses today (November 22) on unabated selling. There was a bloodbath in the market since the opening trading session on Monday. With a large part of the festive and earnings season behind, there are lesser triggers for an upside versus variety of looming factors to downside risks, said stock market analysts.

All the sectoral indices were in red led by Nifty Realty, Media, PSU Bank and Auto with almost 4 percent fall. Stocks like Bharti, PowerGrid, Asian Paints witnessed defensive moves while Bajaj Finance, ONGC, Tata Motors, Reliance were the top laggards for the day.

All the sectoral indices ended in the red with realty, healthcare, auto, oil and gas, and the PSU bank indices down 2-4 percent. BSE midcap and smallcap are down 2-3 percent.

The Sensex was down 1,170.12 points or 1.96 percent at 58,465.89, and the Nifty was down 348.30 points or 1.96 percent at 17,416.50. About 842 shares have advanced, 2479 shares declined, and 157 shares are unchanged.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities,said, "Nifty made an extremely bearish bar today. It closed at 17,435 , down by 330 points since yesterday's close. Nifty has strong support in the 17,200-17,250 range and it is important for Nifty to hold above it. Nifty will face resistance in the 17,650-17,800 range. Traders are suggested to avoid taking new long positions till we see a closing above 18,000 levels in Nifty."

Sachin Gupta, AVP, Research, Choice Broking said, "Technically, the Nifty index has confirmed Head and Shoulder Pattern breakdown on the daily chart and moved down from the neckline. Moreover, the index has also sustained below Lower Bollinger Band formation, which indicates a bearish trend for the coming day. Furthermore, Stochastic & MACD has also witnessed a negative crossover on the daily timeframe, which suggests a bearish move in the index. The Nifty has immediate support at 17200 levels while resistance at 17,650 levels. On the other hand, Bank Nifty has support at 36,300 levels and resistance at 38,500 levels."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "There was widespread selling in the market and the Sensex crashed over 1,600 points intra-day, which shows temporary hiccups could be seen in near term. Benchmark Nifty opened below the 50 day SMA and quickly broke the 17,700 support level. On daily charts, the Nifty has formed a long bearish candle which is broadly negative. In the last five days, the market corrected over 900 points and hence there could be a possibility of a quick pull-back rally. For day traders, 17,350 would be the immediate intraday support level, and above the same a pullback rally may continue up to 17,550-17,600 levels. On the flip side, dismissal of 17,350 could trigger one more round of correction till 17,300-17,240."

Mohit Nigam, Head - PMS, Hem Securities, said, "The markets ended the day with the corrections of nearly 2 percent. The day had many negative news which pushed for the correction. The latest debutant PayTM corrected further by trading 40 percent below its IPO price, weakening the investor sentiment. The Oil & Gas sector, Realty and PSU Banks were the major impacted in today's trading session. The VIX showed a rise of about 18 percent to 17.52 as the market showed strong corrections. Bajaj Finance and Finserv were the major losers among the Nifty50 with a correction of nearly 5 percent in today's trading session. Though the European markets were facing COVID-19 lockdowns, the indices continued to stay strong. The benchmark indices Nifty50 would take support at 17,200 while a mild resistance at 17,500. Though Bank Nifty is showing support at 36,700 and resistance at 38,300. The current correction is giving a good opportunity to all investors for a fresh investment in the markets."

Deepak Jasani, Head of Retail Research, HDFC Securities, said: "Valuations concerns have resurfaced amongst FPIs even as the new age IPOs come under severe selling pressure. Concerns over government taking a step back on its reform agenda on the farm laws front, negative news flow from Reliance and PayTMs’ relentless fall spooked sentiments in a market where the other worries of inflation and interest rates are already taking a toll. A resurgence of coronavirus outbreaks in the US, Europe and some other regions is weighing on investor sentiment. Comments by advisers to the Chinese central bank about risks of “stagflation,” meanwhile, have reinforced concerns about inflationary pressures.

"Nifty has extended the downturn as expected but the fact that it did not close at its low is some consolation. 17,360 and then 17,190 could be the supports for Nifty while 17,613 could be a resistance in the near-term," Jasani added.

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Published on: Monday, November 22, 2021, 03:58 PM IST
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