The market fell in line with weakness in Asian markets as the US slapped tariffs on imports from Brazil and Argentina opening a new front in global trade war. The Sensex closed at 40,675.45, down 0.31 per cent or 126.72 points, while the Nifty settled at 11,994.20, down 0.45 per cent or 54 points.
Banking stocks saw selling pressure as investors took a cautious stance ahead of the RBI monetary policy meet outcome this Friday. Of the 19 sectoral indices, 15 closed in the red and 4 ended in the green.
“The market recovered from the lows of 11960 and closed around the levels of 12000. Real estate and consumer durable stocks showed signs of fresh buying from experts. Techni-cally, it seems that the market is going to consolidate ahead of the announcement of credit policy which is due on 5th December. Nifty should remain between the range of 11900 and 12150 and our strategy should be to byhuy on dips,” said Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities.
“Technically, Nifty made a lower highs for third consecutive session and formed a red body candle on daily chart. On hourly chart, we witnessed Head & Shoulder pattern breakdown; however, it is hovering around lower end of a Rising Channel. The momentum oscillator RSI indicates a negative divergence on daily chart and till the time, Nifty sustains below 12000 – 12025 zone, we may see a profit booking move towards 11850 – 11800 levels. On the flipside, 12158 levels remains major hurdle for the index,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd.
Foreign institutional investors sold shares worth Rs 1,731.33 crore in the capital market in the previous session.
"Domestic markets remained muted on account of downbeat global sentiments after US reinstated tariffs on Argentina and Brazil and threatened even harsher penalties on dozens of popular French products" said Paras Bothra, President of Equity Research, Ashika Stock Broking.