Although the Sensex and Nifty regained some of their initial losses, they both ended the day lower than 23,500.
Despite recovering from the day’s lows, benchmark indices the BSE Sensex and NSE Nifty 50 ended the day lower on November 18 due to persistent FII withdrawals and poor Q2 earnings. The Sensex dropped 241 points, or 0.31 percent, to 77,339, while the Nifty 50 finished below the 23,500 barrier. At 23,454, the Nifty ended the day 79 points lower.
With 1,560 shares rising, 2,361 shares falling, and 124 shares remaining unchanged, the market breadth remained negative. The India VIX, a measure of volatility, closed the day 2.6 percent higher after soaring more than 7 percent intraday.
Nifty dropped below the crucial 23,400 level earlier today, and the Sensex dropped more than 600 points to below 77,000, bringing its slide from its peak of 85,978.25 in late September to more than 10 percent.
With a 2.32 percent decline, the Nifty IT index was the biggest sectoral loser as mood was affected by worries that the US Federal Reserve would postpone rate reduction. “IT stocks reacted negatively today due to a reduced expectation of a Fed rate cut in December, which may pose a delay in spending in the BFSI segment,” said Vinod Nair, Head of Research at Geojit Financial Services.
On the other hand, China’s decision to lower tax breaks on copper and aluminum exports helped metal stocks rise. The Nifty Metals index ended the day up 1.9%.
Market outlook continues to be weak
Rajkumar Singhal, CEO of Quest Investment Advisors, blamed the market fall on FII outflows and poor profits ahead of today’s opening session. “FPIs have continued to sell, while retail investors are still adding to their positions, which indicates some tension in the market,” he stated. According to Singhal, the Nifty may test the 23,000 mark before leveling out, giving long-term investors the chance to buy companies at favorable prices.
According to Vinod Nair, the markets are under further macroeconomic pressure. “Consolidation continued in the market; a slowdown in earnings growth and a weak rupee due to inflation impacted sentiment,” he stated.
The director of Fident Asset Management, Aishvarya Dadheech, issued a warning about long-term difficulties, pointing out that although FII selling has halted, the trend may continue until the year is over. “There is a lot of pressure on the Nifty and the larger market, so the market sentiment doesn’t appear enthusiastic. The froth in headline indices may be mostly over, but the mid-small company indices may suffer further as a result of inflated valuations, according to Dadheech.
Technical outlook: Nifty charts signal downside
According to Mandar Bhojane, Research Analyst at Choice Broking, the Nifty displayed an inverted hammer candlestick pattern on the daily chart, suggesting possible downward momentum. “The 23,350 to 23,300 area provides immediate support for the index, which is now trading close to its 200-day EMA. The 23,800–24,000 range is where resistance is found, according to Bhojane. The Nifty’s Relative Strength Index (RSI), which is currently at 43.26, indicates a weaker stage of the market.
