Profit-booking pulls market down from record highs, PSU banks gain

Maruti Suzuki, ONGC, NTPC, Asian Paints and Hindalco were among major Nifty gainers, while losers included SBI Life Insurance, HDFC Bank, TCS, Infosys and Bajaj Auto.

Indian markets ended flat second day in a row on December 3 after hitting fresh record highs in the opening trade. The BSE Sensex closed 14.61 points or, 0.03 percent, higher at 44,632.65 and the Nifty was up 20.10 points, or 0.15 percent, at 13,133.90.

“After a marginal gap up, the Nifty failed to cross 13,150 on a closing basis. This is a stiff resistance zone for the index. If we are successful in closing above 13,150, we can achieve 13,250-13,300, which will be the next resistance level where the markets can witness selling pressures,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

The Nifty PSU Bank index rose nearly 5 percent, metal index added 2 percent while auto and energy indices rose 1 percent each.

Broader markets outperformed the benchmarks. The BSE midcap index was up 0.6 percent and the smallcap index added 0.8 percent.

Maruti Suzuki, ONGC, NTPC, Asian Paints and Hindalco were among major Nifty gainers, while losers included SBI Life Insurance, HDFC Bank, TCS, Infosys and Bajaj Auto.

Stocks & sectors

The BSE metal index gained 2.5 percent and oil & gas, power and auto indices rose 1.5 percent each. Some selling was seen in IT stocks.

A volume spike of more than 100 percent was seen in Indiabulls Housing, Concor and Maruti Suzuki.

Long buildup was seen in Tata Chemicals, Concor and Sun TV, while short buildup was seen in SBI Life, Bosch and Godrej Consumer Products.

More than 100 stocks hit a 52-week high on the BSE. These included Indoco Remedies, Cadila Healthcare and Crompton Greaves Consumer Electricals.

Technical View

The Nifty formed a Bearish candle on the daily scale as it closed lower than the opening level and continued forming higher highs-higher lows for the fourth trading session.

“Now it has to continue to hold above 13,000 to witness an up move towards 13,250 then 13,400 levels, while on the downside, major support exists at 12,900 zone,” Chandan Taparia of Motilal Oswal Financial Services told .

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