Stock Market Today: Sensex, Nifty 50 Slide Amid Bearish Trends

The Indian stock market continued its downward trend for the sixth consecutive session on November 14, underscoring the persistent bearish control over Dalal Street. However, against the overarching negative sentiment, significant support from heavyweight stocks like Reliance Industries and HDFC Bank mitigated deeper losses, highlighting a complex trading environment.

Intraday Gains and Indices Movements

Amidst the tumult, a ray of hope was observed as banking and auto stocks drew fresh interest, pushing frontline indices up by 0.50% during the first half of trading. Unfortunately, this momentum couldn’t hold as FMCG stocks, under heavy selling pressure, led the indices to close flat.

• Nifty 50 closed with a decline of 0.11% at 23,532 points, reflecting a weekly downturn of 2.55%.
• S&P BSE Sensex slipped by 110 points, or 0.14%, ending at 77,580, marking a weekly decline of 2.40%.

The broader market, however, saw a revival, snapping a five-day slide. The Nifty Midcap 100 gained 0.45%, closing at 54,043 points, while the Nifty Smallcap 100 rose 0.81%, finishing at 17,601 points. Still, both indices recorded a weekly drop of approximately 4.6%.

Sectoral Performance

Among the sectoral indices, Nifty Media ended the day with a surge of 2.26%, reflecting investor confidence despite volatile markets. This was followed by gains in Nifty Realty, Nifty Auto, and Nifty Bank, all closing with gains of up to 1%. Conversely, Nifty FMCG continued its slump for the fourth consecutive session, erasing an additional 1.53%.

• Nifty PSE fell for the third consecutive session, losing 0.92% to a 5-month low.
• Nifty PSU Bank, Nifty Pharma, and Nifty Energy also experienced losses of 0.7%, 0.26%, and 0.18% respectively.

Key Stock Performances

The trading session recorded declines for 30 of the Nifty 50 stocks, with the FMCG sector notably underperforming. HUL, Tata Consumer Products, Britannia Industries, and Nestle India faced drops ranging from 2.4% to 3.1%, indicating sector-specific pressures.

In terms of gains, Eicher Motors stood out, appreciating by 6.4% following robust earnings that surpassed market expectations. Similarly, Hero MotoCorp ended with an increase of 1.9%, buoyed by investor optimism.

• Other gainers included HDFC Life Insurance, Reliance Industries, Kotak Mahindra Bank, and SBI Life Insurance, posting returns of up to 1%.

Inflation and Market Sentiment

Persistent inflation worries continue to hamper investor sentiment, with expectations that increased costs could dent consumer spending power, ultimately affecting sales. This uncertainty was reflected in the continued cautious approach by Foreign Institutional Investors (FIIs), who stayed as net sellers despite the reduced selling intensity.

Vinod Nair, Head of Research at Geojit Financial Services, noted the stabilization efforts within the market, acknowledging that the muted Q2 earnings impact has largely been absorbed by investors.

Technical Analysis and Future Projections

Senior Technical Analyst Rupak De of LKP Securities remarked on Nifty’s performance near its 200-day EMA. The formation of a gravestone doji-like pattern indicates continuing bearish sentiments, advising a ‘sell on rise’ strategy as the index lingers in oversold territories.

• Support for Nifty is seen at 23,450, whereas resistance is predicted at 23,650, suggesting a short-term trading range.

The trajectory of the Indian markets remains contingent on domestic and global economic updates, fiscal policies, and the anticipated uptick in government expenditures post-elections, potentially stabilizing the economy and fueling improvements in business performance.

Conclusion

The Indian stock markets are navigating intrinsic volatility amidst a blend of global economic pressures and domestic fiscal adjustments. As traders and investors assess current market dynamics, strategic positioning based on sector performance and technical indicators remain crucial for optimizing portfolio resilience.

Disclaimer: This analysis provides insights for informational purposes only and should not be considered as investment advice. Always consult with financial advisors before making investment decisions.

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Source: https://www.livemint.com/market/stock-market-news/stock-market-today-sensex-nifty-50-slide-for-6th-day-as-bears-continue-to-rule-dalal-street-fmcg-pack-worst-hit-11731578322940.html