Market commentary of November 18

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Equity Markets were flat and lacklustre for the day, closing marginally lower due to the absence of any major trigger. Nifty closed down 0.01% at 11,894 while Sensex was down 0.2% at 40,284. Sectorally, Metals was the major gainer, rising 1.8%, followed by PSU Banks (1.4%), Pharma (1.2%), Media (0.8%) and Infra. On the other hand, Auto and FMCG were the losers for the day.

Domestically, the concerns over economic slowdown continue on account of poor macro data points and Moody’s downgrade of India’s outlook from Stable to Negative. With earnings season over, the market this week should be range-bound given no fresh triggers. The focus would now shift to the winter parliament session which has begun today. On the global front, markets would keep an eye on Fed policy minutes, due on November 21 and further progress on the US-China trade front which is taking a positive shape. Even crude oil prices would be monitored closely as it recently surged to above USD63/bbl, which is 8 weeks high.

Technically Nifty formed a small-bodied candle followed by Doji candle on a daily scale which indicates the absence of participation. Now it has to continue to hold above 11850 levels to witness an up move towards 11950 then 12000 zones while on the downside major supports is seen at 11780 levels.

Mr. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Private Ltd.