In a volatile trading session, market indices on Thursday closed lower for the second straight session in line with weak global equities. Sensex ended 80 points lower at 48,093 and Nifty fell 8 points to 14,137. Yesterday, Sensex fell 263 points to 48,174 and Nifty closed 53 points lower at 14,146. During the last session, Sensex hit a lifetime high of 48,616 and Nifty rose to a new high of 14,244.
RIL, TCS, Maruti, NTPC, HUL, Reddy, Infosys and Titan were among the top losers today. On the other hand, Maruti, Axis Bank, Airtel, HDFC twins, M&M, ONGC, Bajaj twins, SBI, L&T were among the gainers.
Except for FMCG, IT and pharma, all the other sectors closed in green territory, with almost 4% gain in metals and 1.3% rise in realty scrips.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd. - Investment Advisor said,"The market witnessed some lacklustre movement. Nifty is still trading below its immediate resistance zone of 14250-14270. A significant breakout above the levels of 14270 could result in improvement of market breadth and the market can rally till the levels of 14680. The nearest support for Nifty would be 14000."
Ajit Mishra, VP - Research, Religare Broking said,"We believe Q3 earnings and global cues would provide further direction to the markets. To start with, the IT major, TCS, Q3FY21 result would be on participants' radar. Traders should maintain extra caution in the selection of stocks now and focus on overnight risk management."
S Ranganathan, Head of Research at LKP Securities said,"After the Democrats won the Georgia Senate, global cues were positive in morning trade. Afternoon trade, however, did see profit-taking in FMCG stocks despite which we saw a close above 48K led by financials & metals. The broader markets witnessed the demand for housing finance, realty and liquor stocks."
On Nifty's technical outlook, Rohit Singre, Senior Technical Analyst at LKP Securities said,"Index opened with good gap but again failed to hold the gains for second consecutive day and showed a profit booking and managed to close on a negative note at 14,137 with minimal loss. The Index has formed a good base near 14100-14000 zone holding above said level one can hold longs but any break below 14k mark can result in more profit booking and we may see dip towards 13800 zone. The strong hurdle for Nifty is formed near 14,250 zone and fresh upside is only possible above 14250 zone."
Asian markets were trading mixed on Thursday taking cues from overnight US markets.
Despite unrest in Washington, the Dow and the S&P 500 ended higher, soaring to all-time highs on Wednesday, as investors piled on stocks betting that a Democratic sweep in Georgia would lead to more fiscal stimulus and infrastructure spending.
Investors added more of economically sensitive companies like financial and industrial stocks and reduced tech stocks.
European markets traded mixed as lockdown restrictions due to COVID-19 and political developments in the US remained key focus points.
Keshav Lahoti-Associate Equity Analyst, Angel Broking said," Global cues were supportive: Dow Futures and Nasdaq Futures were up by 0.4% and 0.5% respectively, whereas FTSE was down by 0.3%. We are cautiously positive on the market. Now, market focus will shift to quarterly results to be reported by the companies."
On the currency front, Indian rupee, the domestic currency plunged 20 paise to end at 73.31 against US dollar, tracking weak domestic equities and rebound in American currency.