Market ends lacklustre as investors book profits at record highs

A day after touching record high, Sensex lost steam on November 21 as investors took money off the table in the light of weak global cues.

Most global markets were in the red as concerns resurfaced over the US-China trade deal after the US House of Representatives on November 20 passed two bills to support protesters in Hong Kong and send a warning to China about human rights.

Nifty traded lacklustre and settled marginally lower, taking a breather after the recent up move. It opened flat and remained rangebound thereafter.

Movement on the stock-specific front kept the traders busy till the end.

Sensex settled 76 points, or 0.19 percent lower at 40,575.17, while Nifty closed at 11,968.40, with a loss of 31 points or 0.26 percent.

Secondary barometers, BSE Midcap and Smallcap indices underperformed the benchmark Sensex, closing with losses of 0.73 percent and 0.43 percent, respectively.

Tata Steel, Bharti Airtel, Yes Bank, ONGC and ITC finished as the top losers in the Sensex index falling between 2-3 percent. On the other hand, Hindustan Unilever, Larsen & Toubro, Bajaj Auto, State Bank of India and HDFC Bank closed as the top gainers in the Sensex kitty, rising up to 1 percent.

“We strongly feel that the market is set for profit taking or consolidation prior to further rise. Traders should limit their leveraged trades in the index and book profits on every rise. In the case of decline, 11,800-11,850 zone would act as a cushion for Nifty. Stocks, on the other hand, would continue to see movement on both sides thus maintain extra caution in the stock selection,” said Ajit Mishra, Vice President- Research, Religare Broking.

Stocks & Sectors:

On the sectoral front, BSE Metal, Oil & Gas and Telecom fell 2 percent each. BSE Energy, Basic Materials, Utilities and Consumer Durables were the sectors that closed lower by a percent.

Volumen spike of 200-500 percent was seen in stocks like Bosch, Petronet LNG, Indraprastha Gas, Sun TV and Motherson Sumi Systems.

Long Buildup – Zee Entertainment, Bosch, NCC

Short Buildup – Castrol India, Federal Bank, UPL

Stocks in news:

Zee Entertainment: Zee Entertainment Enterprises share price rose over 12 percent after promoters of the media house mulled selling their stake in the company. Essel Group, a promoter of the company, is looking to sell up to a 16.5 percent stake in the media company.

Reliance Capital: Reliance Capital closed five percent lower after Delhi High Court restricted the sale of the company’s assets. The court passed an order placing restrictions on any sale, disposal or creation of any encumbrance on any assets of the company, which include the company’s 4.28 percent shareholding in Reliance Nippon Life Asset Management till December 16.

Jubilant Life: Jubilant Life Sciences share price closed over 4 percent higher after China announced the termination of anti-dumping duty on pyridine imports from India and Japan.

SCI, BPCL: Shares of Shipping Corporation of India (SCI) fell over 6 percent while those of Bharat Petroleum Corporation ended 6 percent lower, a day after the Cabinet gave the in-principle approval for disinvestment in select central public sector enterprises (CPSEs).

Technical View:

The consolidation in Nifty below 12,000 continued. The region around previous all-time highs of 12,100 is witnessing some profit booking.

“It’s not at all unexpected to witness some retracement near all-time highs. The broader structure continues to remain positive and the uptrend is intact. Near-term corrections towards the support zone should be utilised to build long positions,” said Manav Chopra, CMT, Head Research – Equity, Indiabulls Ventures.

Chopra said Nifty has support in the range of 11,920-11,850, but the index will face resistance in the range of 12,000-12,100.

Three levels to watch on Thursday would be 11,956.9, 12012.1, 12,028.2

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