Market indices closed lower on Friday amid weak global markets. Sensex ended 110 points lower at 44,149 and Nifty fell 18 points to close at 12,968. Traders said market participants awaited Q2 GDP data to be released later in the day.
Yesterday, Sensex ended 431 points higher at 44,259 and Nifty gained 128 points to 12,987. During the week, Sensex and Nifty gained 267 points or 0.61% and 117 points or 0.91%, respectively.
PowerGrid, Reliance Industries and TCS were among the top laggards on Sensex. Meanwhile, NTPC, Bajaj Auto, Maruti, Tech Mahindra, L&T, Asian Paints and Bajaj Finance were among the top gainers today. Among sectors, barring IT, all the other sectors closed in the green territory, with over 2% gain in realty and almost 1.5% rise in auto and media scrips.
Domestic indices turned volatile by the first hour of the session on Friday and swung between gains and losses in a narrow range as investors took a breather after the recent global upmove.
Overseas, Asian markets were trading little changed as participants reacted to Chinese Industrial profits data and news on vaccine development by Oxford-AstraZeneca.
US markets were closed yesterday on account of Thanksgiving Day.
Investors were nervous due to the questions about the efficacy of possible coronavirus vaccine after data errors were revealed. Questions were being raised over AstraZeneca's vaccine candidate, for which the firm said combined results revealed it to be 70% effective.
Worries that US states and European governments are reimposing controls on business and travel as infection rates surged also weighed on investor sentiment. Meanwhile, the US Congress is deadlocked on a possible new aid plan.
On the domestic front, traders are awaiting the July-September quarter gross domestic product data scheduled to be released later in the day by National Statistics Office. April-November fiscal deficit, October goods and services tax (GST) collections, and October core sector data shall also be in focus.
Nirali Shah, Senior Research Analyst, Samco Securities said,"Nifty 50 closed the week with mild gains forming a spinning top candle at the rising channel resistance which hints that the rally is getting tired and may take a pause to consolidate its gains. Though majority of sectoral indices closed in positive, Nifty metal and pharma remained the top leaders. Nifty bank which has been the major driver of the recent bull move, has slowed down in momentum and taken a back seat while pharma and IT seem to be taking the charge. Outlook for the short term is bullish but as the benchmark indices are trading overbought we suggest traders take a defensive stance and lighten the aggressive bets. Immediate support and resistance are now placed at 12750 and 13150, a break below the support may lead to a retest of 12400 and break above 13150 might open targets upto 13400."
Ajit Mishra, VP - Research, Religare Broking said,"Markets will first react to the GDP numbers next week. Besides, the auto sales numbers and upcoming RBI policy meet would be on their radar. We expect prevailing consolidation to continue in the index however there'll be no shortage of trading opportunities in broader markets. Traders should maintain a "buy on dips" approach while keeping their focus on the selection of sectors and stocks."