Stock market today: Nifty 50, Sensex fail to hold gains, close flat in volatile trade

Stock market today: The Indian market ended on a lacklustre note on Monday, November 11, as the gains in IT and bank stocks were offset by losses in index heavyweights. 

Despite starting the day in negative territory, both the Nifty 50 and Sensex gained nearly 1% in the first half of the session. However, the market was gripped by a "sell on the rise" sentiment, causing both indices to close lower. Investors seem to be using any uptick as an opportunity to sell, with sentiment remaining subdued due to concerns over softening Q2 earnings and other domestic factors.

The IT and banking sectors helped support a recovery in the market, but selling in heavyweights such as Reliance Industries, Asian Paints and Bharti Airtel weighed on the overall market rebound.

Consequently, the Nifty 50 closed the session with a decline of 0.03%, settling at 24,141. The S&P BSE Sensex closed 52.51 points, or 0.07%, lower at 79,433.

In contrast, the broader market continues to face significant selling pressure, driven by the overheated valuations of mid- and small-cap stocks. The Nifty Midcap 100 index declined by 0.88%, closing at 55,853, while the Nifty Smallcap 100 index dropped 1.22%, finishing at 18,219 compared to the previous session’s closing level.

The recent correction in Indian stocks has been primarily driven by domestic factors rather than global developments. Key concerns include the expectation that inflation will remain elevated in the coming months, a slowdown in high-frequency indicators, weak spending by urban India, the rupee hitting record lows, and elevated market valuations.

Additionally, there are growing concerns that the Reserve Bank of India (RBI) may keep interest rates at higher levels until February, adding further pressure on market sentiment. 

Among the sectoral indices today, Nifty IT extended its winning streak for the second consecutive session on a strong US dollar, closing with a 1.28% gain, followed by Nifty Bank, which rose by 0.61%. On the other hand, Nifty Media fell by 1.3%, while Nifty Metal, Nifty Pharma, Nifty Oil & Gas, and Nifty Consumer Durables all ended with losses ranging from 0.65% to 1%.

Commenting on today's market performance Vinod Nair, Head of Research, Geojit Financial Services said, “The actions of FIIs are dominating the current market momentum, which is backed by a weak set of earnings and expectations from Trump policy. The risk of further downgrades in Nifty earnings casts clouds over investor sentiment, while the IT sector continued to outperform due to the strong US dollar and in anticipation of a revamp in US IT spending.”

“India is also looking forward to the CPI data with a muted view as food prices are likely to be higher on an MoM basis, essentially forging RBI to hold the interest rates in the short-term,” he further added.

27 Nifty 50 stocks close in the red

A total of 27 Nifty 50 stocks ended today’s session in the red, with Asian Paints being the biggest loser. The company’s weak performance in Q2FY25 triggered a sharp sell-off, resulting in an 8.17% fall in the stock to ₹2,543, its lowest level since April 2021. Britannia Industries followed closely, tumbling 5.4% ahead of its Q2FY25 results. Other stocks such as Apollo Hospitals, Cipla, ONGC, JSW Steel, Tata Steel, and eight others ended the session with losses exceeding 1%.

On the positive side, Power Grid Corporation gained 4.3% after reporting strong Q2 numbers. Trent rebounded with a 2.9% gain following five consecutive days of losses as Goldman Sachs initiated coverage on the stock with a ‘Buy’ rating.

IT stocks, including Infosys, HCL Technologies, and Tech Mahindra, all ended the session with gains of over 1.4%. Auto stocks such as Maruti Suzuki India, Eicher Motors, and Bajaj Auto finished with gains of up to 0.80%.

Short-term outlook: Nifty 50's key levels and trends

Hrishikesh Yedve, AVP - Technical and Derivatives Research at Asit C. Mehta Investment Intermediates said, "The Nifty 50 formed a doji-like candle, indicating uncertainty. On the higher side, the 100-Days exponential moving average (DEMA) hurdle is placed near 24,430 followed by 24,540, which was last week’s high."

"On the downside, the 150-day exponential moving average (DEMA) is placed near 24,990, which will act as short-term support for the index followed by 23,800, where the recent swing support is placed. In the immediate term, we expect the index will consolidate in the range of 23,800 to 24,500. A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance," Hrishikesh Yedve added.

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty remained volatile, failing to give any directional breakout. The index oscillated within the range of 24,000-24,350. The momentum indicator RSI shows a bullish crossover. Additionally, on the daily chart, the index has formed an inverted hammer pattern, indicating a possible bullish reversal. On the higher side, the index might move towards 24,500-24,550, while support is placed at 24,000."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.