What happened with the Share Market Today

Equity benchmarks Sensex and Nifty gave up early gains to close in the red on account of profit booking in power, metal, IT, and consumer durable stocks amid a weak trend in global equities ahead of the US mid-term election outcome and inflation data due later this week. Sensex ended 152 points or 0.25 percent lower at 61,033.55. The index witnessed high volatility towards the fag-end and recorded an intra-day high of 61,447 and a low of 60,905. On similar lines, the broader Nifty fell 46 points or 0.25 percent to end at 18,157 while touching an intra-day high of 18296 and a low of 18118. Traders were booking profit after the Nifty gained 2% in the three trading sessions, Nifty just 2% lower than the all-time high of 18606.  India Vix gained 2% to close at nearly 16.

Among the global markets, the US market gained 2% in the last two trading sessions (the Indian market was shut yesterday) ahead of the US midterm elections outcome and inflation data due later this week. The fall in US treasury yield and Dollar Index fell to 2-month at below 110 have had a positive impact on the global markets. Asian market witnessed a mixed bag and European markets declined as investors remained cautious ahead of key US inflation data later this week that could provide further clues on the course of monetary policy tightening. On the domestic front, with impressive quarterly results, USDINR fell to a 5-week low and a strong FIIs inflow will be positive for the market sentiment.

Stock-specific action was seen in the markets with PSU Banks being the biggest gainer today. PSU Bank Index surged by 4% to close to nearly a 5-year high on account of strong quarterly results announced. Union Bank surged 9% to close at Rs64. PNB soared over 7% to close at Rs45 amid a hefty volume of 30cr shares traded on NSE. PNB has 0.1% shares block deal today. UCO Bank, Bank of Maharashtra, Bank of India, Bank of Baroda, and IOB gained between 3-8%.

IT stocks witnessed profit booking. Tech Mahindra slipped 2% to close at Rs1029. Coforge, TCS, and LTI declined marginally. Auto stocks like Maruti, Tata Motor, M&M, Bajaj Auto, and Eicher Motor declined marginally.

Technical Outlook:

The nifty index opened positive but failed to hold above 18300 zones and sank towards 18117 levels in the last hour of the session. Profit booking was seen in the index at a higher zone and it closed with losses of around 45 points. It formed a Bearish candle on the daily frame but has been making higher highs from the last three sessions. Now, it has to hold above 18050-18088 zones, for an up move towards 18350 and then 18500 zones whereas supports are placed at 18050 and 17950 zones.