The stock market indices closed negative at the end of a highly volatile trading day on November 30. The Sensex ended 195.71 points lower or 0.34 percent at 57,064.87. The broader Nifty shed 81.40 points or 0.48 percent at 16,972.60. About 1675 shares have advanced, 1383 shares declined, and 112 shares are unchanged.
On the sectoral front, Nifty IT & FMCG ended in the green. Nifty Metals and Commodities were top losers. Stocks like Powergrid, SBI Life, Bajaj Finsrv, Shree Cements, Titan were top gainers. Tata Steel, Kotak Bank, Adani Port, JSW Steel were the prime laggards.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty had an extremely volatile session today, after making a high of 17,324 it closed at 16,970 , down by almost 350 points from the top. This is a bearish sign and Nifty may re-test 16,850 levels in the next few sessions. Traders are advised not to initiate any new longs in the current markets."
Palak Kothari, Research Associate, Choice Broking said, "On a daily Chart, the Index has formed a bearish candle which suggests weakness for the next trading sessions. The index has given closing below 21 and 9DMA which points out bears are active. Moreover, a daily Momentum indicator MACD and Stochastic were trading with a negative crossover which suggests bearish movement in the upcoming session. At present, the Nifty has immediate support at 16,800 breaching below the same can show 16,600-16,500 levels while resistance comes at 17,350 levels. On the other hand, Bank nifty has support at 35,300 levels while resistance at 37,000 levels."
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. However, volatility spiked by 25 percent on Friday, November 26, led by rising concerns on the new COVID-19 variant, made investors cautious. Further, an increase in the new variant cases will be a short-term negative for the equity market. Currently, VIX trading around 21 levels signifies an increase in cautiousness, as compared to the previous week. Volatility is likely to continue for some more time, as the direction of the new variant.
"Oil prices, and Dollar index will further drive the market fundamentals. FIIs are the net sellers in the equity market, especially from the last two weeks, and DIIs are consistently providing support. With every FIIs selling, here onwards, DIIs support will be critical for the market. Investors should stick to the fundamentals where the earnings visibility is high, and we believe sector rotation with a focus on quality and momentum will deliver superior returns moving forward,” Kulkarni added.
Mohit Nigam, Head - PMS, Hem Securities, said, "Indian Benchmark Indices eroded the early morning market gains and ended on a negative note, as global markets have logged sharp losses. Strong selling pressure was seen in Nifty Metal (Nifty Metal -1.94 percent). While Nifty consumer durables closed in green at 2.24 percent higher.
"On the technical front 16,700 and 17,300 are immediate support and resistance levels for Nifty50 and for Bank Nifty immediate support and resistance levels are 35,400 and 36,800."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "On a day when the volumes on the NSE were very high (probably due to high FPI participation), Consumer Durables and IT indices gained the most while Metals, Auto and Bankex fell the most. Smallcap index gained 1.45 percent while Midcap index rose 0.29 percent. Nifty could not capitalize on the gained made on the previous session. It formed an inverted hammer like pattern on daily charts after a fall, suggesting possibility of an upward reversal as long as the lows of 16,931 are protected. On the upside 17,352 remains a resistance."
