Pvt banks, IT drag Sensex 230pts down, Nifty below 18,350; Paytm tanks 10%

CLOSING BELL: Among the Sensex 30 shares, Titan, M&M, Maruti, HDFC and Bajaj Finserv were the major per centage losers.

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STOCK MARKET HIGHLIGHTS

After exhibiting lacklustre movement for a major part of the trading day on Thursday, the key benchmark indices weakened in late trade owing to selling pressure in auto, IT and HDFC twins.

The S&P BSE Sensex, which, touched a high of 62,051 in morning deals, dropped to a low of 61,643 –down over 400 points from the day’s high. The Sensex finally ended 230 points lower at 61,751.

The NSE Nifty 50, from a high of 18,418 fell to a low of 18,313, and eventually settled 66 points lower at 18,344.

Among the Sensex 30 stocks, Titan and Mahindra & Mahindra (M&M) slipped over 2 per cent each. Maruti, HDFC, Dr.Reddy's, Bajaj Finserv and Infosys were the other prominent losers. On the positive front, Larsen & Toubro gained 1.3 per cent. PowerGrid also finished with a notable gain.

The broader indices also declined in line with the BSE benchmark. The BSE Midcap and Smallcap indices were down 0.3 per cent each. The breadth was also negative, with almost 2,000 shares declining as against 1,516 stocks advancing on the BSE.

Sectorally, the BSE Consumer Durables index dropped 1.7 per cent. The Auto and Power indices were down 1.3 per cent each, while the IT index slipped 0.8 per cent.

Among individual stocks, shares of Paytm tanked over 10 per cent to Rs 540, after nearly 6 per cent equity of the company changed hands on the exchange via block deals. Technically, in case, the stock breaks its all-time low, it can slide all the way to Rs 400. READ MORE

Shares of Tata Motors dipped 3 per cent in intra-day deals after Jaguar Land Rover's (JLR's) Chief Executive Officer (CEO) Thierry Bolloré announced his resignation from the company on Wednesday for personal reasons. He will serve his last day on December 31, 2022. READ MORE

R Systems International soared 15.7 per cent after private equity player Blackstone made an open offer to acquire majority stake in the IT-enabled services company at price of Rs 245 per share. READ MORE

4:05 PM

COMMENT :: 'Contra traders can take long bets near 18,200'

The benchmark indices witnessed lacklustre activity. The Nifty ended 66 points lower, while the Sensex was down by 230 points. Among Sectors, Auto and digital

indices corrected over 1 per cent whereas some buying interest was seen in selective PSU Banks stocks.

Technically, on intraday charts, the index has formed lower top formation, which is broadly negative. However, the medium term texture of the market is still on the bullish side.

We are of the view that 18,400/62,000 could be the immediate hurdles for the bulls. Below this, they could retrace till 18,250-18,200/62,450-61,200.

On the flip side, 18,400/62,000 would be the fresh breakout levels for the bulls, above which the indiced could move up to 18,500-18,535/62,300-62,500. Contra traders can take long bets near 18,200/61,200 with strict 18,150/61,000 support stop loss level.

Views by: Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

4:02 PM

COMMENT :: 'Expensive domestic valuation is turning FIIs cautious'

Global markets have recently surged on expectations that the Fed may scale back its aggressive rate hike schedule in reaction to easing U.S. inflation statistics. The euphoria was, however, dashed by better U.S. retail sales in October and aggressive remarks from Fed officials. The domestic market moved in tandem with the trend, with most sectors in red. As the domestic market got more expensive, FIIs were seen being cautious.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

3:57 PM

TECH VIEW :: 'Fall below 18,300 may trigger a correction towards 18,000'

Nifty started lower and remained volatile throughout the day. On a closing basis, Nifty bulls were able to hold the crucial support of 18,300. The RSI (14) on the daily chart has entered a bearish correction. Going forward, a fall below 18,300 may trigger a correction towards 18,100-18,000. On the other hand, resistance is visible at 18,450.

Views by: Rupak De, Senior Technical Analyst at LKP Securities

3:54 PM