After a positive opening, the index made an intraday high at 18012.25 level and traded in a narrow range throughout the session and managed to close the session with a moderate loss of 40.70 points. Bank Nifty was stronger than Nifty and closed the session at 39,938.45 levels with a gain of 174 points.
At close, the Sensex was down 109.40 points or 0.18 percent at 60,029.06. The broader Nifty was down 40.70 points or 0.23 percent at 17,889.00. About 1851 shares have advanced, 1216 shares declined, and 107 shares are unchanged.
On the sectoral front, Nifty Realty and PSU bank indices are up 2-3 percent, while selling is seen in the FMCG, pharma, IT and metal names. Stocks like MARUTI, TITAN, NTPC, SBIN were top gainers. TATASTEEL, GRASIM, JSWSTEEL & HINDALCO were prime laggards.
Motilal Oswal – MD & CEO, Motilal Oswal Financial Services Ltd. said, "Equity markets had a historical journey in Samvat 2077, as it touched new life time highs with Nifty/Sensex surpassing 18k/60k mark for the first time in history. The run-up in the market has been driven by a strong global liquidity, containment of COVID-19 cases, significant pickup in vaccination and sharp recovery in corporate earnings.
"Nifty has given more than 40% percent returns in Samvat 2077 so far, while Midcaps/Smallcaps have outperformed with returns in excess of 70 percent/80 percent respectively. The key themes during Samvat 2077 were high beta, cyclicals and value stocks. With the economic cycle picking up, we expect the corporate earnings growth to revive as well. Markets have always moved in tandem with earnings growth. Although there would be ups and downs in-between, we expect the overall trend of the market to remain positive in Samvat 2078 as well," Oswal added.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty took resistance around 18,000 levels and corrected over 100 points from there. It closed at 17,890 , down by 40 points since Monday's (November 1) close. Nifty has strong resistance in 17,950 to 18,050 range. It has support at 17,600 and 17,450 levels. Traders are advised to book profits in every rise and avoid taking long positions till Nifty closes above 18,350 levels."
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the Index has taken resistance from 21 DMA and showed correction, crossing above the same can show further upside movement. On the intraday hourly chart, the Index has been trading with lower high and lower low, which indicates weakness for the upcoming session. However, an Hourly Momentum indicator MACD is trading with a positive crossover which suggests bullish movement is intact. At present, the Nifty has immediate support at 17,700 while resistance comes at 18,030 levels, crossing above the same can show 18,100-18,200 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, Investors are trading cautiously ahead of Diwali festival and have booked profit in select counters that have run-up sharply in the recent upsurge. "We are of the view that ahead of the weekly expiry, the index is likely to consolidate in the range of 17,800 to 18,050 levels. For Nifty, the intraday support has been placed at 17,850-17,800, whereas 20 day SMA or 18,050 would act as a key resistance level. On the other side, the dismissal of 17,800 could possibly trigger another correction wave up to 17,725."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "Nifty lost some steam on November 2 after the rise seen on November 1. Advance decline ratio remains positive as the broader markets keeps drawing trader/investor interest. FPI activity seemed muted compared to that seen in the last few days. 18,033-18,098 is the next band of resistance while 17,833 is the support."
Mohit Nigam, Head - PMS, Hem Securities said, "On the technical front, Indian markets witnessed dull movement on Tuesday (November 2) and we believe once the market sustains above 18,000 levels for 2-3 sessions, then it could result in a short term rally till 18,50-18,300 levels. Immediate support and resistance in Nifty 50 are 17,600 and 18,000 respectively."
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