No cheers from fresh measures, market snaps 8-day gaining streak

Market snapped 8-day winning streak on November 12 with Nifty falling below 12,700  despite fresh stimulus announcements by the government and Moody’s upward revision of India’s GDP forecast.

The Sensex ended 236.48 points or 0.54 percent lower at 43357.19, and the Nifty shed 58.40 points or 0.46 percent to close at 12690.80.

Moody’s revised India’s GDP forecast for CY20 to -8.9 percent from -9.6 percent earlier and also revised India GDP forecast for CY21 to +8.6 percent from +8.1 percent earlier.

In the fresh stimulus measures, the government has extended the emergency credit line guarantee scheme till March 31, 2021 and announced launching of a credit guarantee support for all 26 stressed sectors.

The government will allocate additional Rs 18,000 crore over Budget estimates under Prime Minister Awaaz Yojana Urban and providing Rs 65,000 crore fertiliser subsidy to the farmers, said Finance Minister.

“The Nifty was unable to get past yesterday’s high. This could be a signal that the index is taking a breather after a jubilant one way move! If we cross 12785/12790, the Nifty will resume its uptrend. Traders could consider booking partial profits at these levels and can re enter if 12790 is crossed for a target of 13000.,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Among sectors, the Nifty Bank and PSU Bank indices shed 2 percent and 2.3 percent respectively. The FMCG Index added over 1 percent.

The broader indices outperform the main indices with BSE midcap added 0.5 percent and smallcap index rose 1.2 percent.

SBI, Coal India, Kotak Mahindra Bank, IndusInd Bank and NTPC were among major losers on the Nifty, while gainers were Grasim, HUL, Shree Cements, Hindalco and ITC.

Also Read – Gainers & Losers: 10 stocks that moved the most on November 12

Stocks & sectors

Sectorally, BSE Bank index fell 2 percent, while BSE FMCG and Capital Goods indices gained 1 percent each.

A volume spike of more than 100 percent was seen in Cummins India, Page Industries and Indiabulls Housing.

Long buildup was seen in Indiabulls Housing, Cummins and REC while short buildup was seen in Coal India, Voltas and Canara Bank.

Escorts, Bajaj Electricals and Blue Dart are among the stocks which touched their 52-week high on BSE.

Technical View

The Nifty formed a small Doji with an Inside Bar which is a Harami Cross pattern on daily scale indices a pause in positive momentum if any follow up happens.

It negated its higher high formation of the last seven sessions but hasn’t breached the previous day’s lows which keeps the bullish bias intact.

“Now it has to continue to hold above 12550 zones to witness an up move towards 12800 and 12900 zones while on the downside major support exists at 12430 zones,” said Chandan Taparia of Motilal Oswal Financial Services told Moneycontrol.

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