Sensex, Nifty close in red; will stock markets continue gaining next week? Here’s what experts say

Domestic benchmark indices, Sensex and Nifty, closed in the red on the last trading session of this week. S&P BSE Sensex closed with 44,149 points or down 0.25% while the 50-stock NSE Nifty moved 18 points lower to end at 12,968. Index heavyweights like Reliance Industries, TCS, and Infosys all closed with losses. Only 12 of the 30 Sensex constituents closed with gains. Broader markets continued to shine bright as they outperformed the benchmark indices. BSE Midcap index closed 1.91% higher while BSE Smallcap index gained 2.4%.

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Indian equity benchmark indices ended lower in a highly volatile session on Nov 27. However the intraday range for the Nifty was just 121 points. Asian and European stocks were mixed on Friday, amid thin trading volumes, as investors went into sidelines on reports raising doubts about the effectiveness of AstraZeneca’s COVID-19 vaccine. Nifty continues to consolidate after making a high on Nov 25. It has formed a doji on weekly charts after a sustained rise, suggesting caution at high levels. Also a three day weekend pushed traders to reduce their open positions. An upward breach of 13146 is necessary to expect more upsides while a downward breach of 12833 could bring in more downsides and mean that a temporary top has been made on Nov 25.  A better than expected India Q2 GDP number this evening could result in a good opening on Tuesday.”

Ajit Mishra, VP – Research, Religare Broking –

“Markets traded choppy throughout the session and ended with marginal losses. After starting on a flat note, the benchmark hovered in a range till the end. Meanwhile, movement in the broader market kept the participants busy. Markets will first react to the GDP numbers next week. Besides, the auto sales numbers and upcoming RBI policy meet would be on their radar. We expect prevailing consolidation to continue in the index however there’ll be no shortage of trading opportunities in broader markets. Traders should maintain a “buy on dips” approach while keeping their focus on the selection of sectors and stocks.”

Joseph Thomas, Head of Research – Emkay Wealth Management –

“The markets remained volatile throughout the day, with the large cap indexes continuing to be stalled, and closed with losses, with the IT and Oil & Gas indexes too in the red.. Interestingly, the mid- caps and the small caps put up a good show with gains bordering on  1.90 % and 2.40 % respectively. One of the factors which the market is eagerly looking forward to, for likely direction, is the GDP numbers which are expected to be released later this evening.”

Keshav Lahoti Associate Equity Analyst, Angel Broking –

“Indian market closed marginally in red by closing down by 0.2%. Although, Nifty Midcap 100 and Nifty Smallcap 100 outperformed Nifty by ~3% by closing up by 2.7% and 3.1% respectively. Clearly investors buying interest was inclined towards midcap and smallcap stocks due to its valuation gap compared to large caps. Today the Nifty crossed 13,000 level again but closed below it. Global cues were neutral: Dow Futures and Nasdaq Futures were up by 0.2% and 0.3% respectively, whereas FTSE was down by 0.7%. After the sharp rally in the market, we are a bit cautious on the market and advise investors to have 15-20% in cash so that it can be deployed if correction happens in the market due to any negative news flow in the future.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities –

“The short term trend of Nifty is choppy and the market is expected to move in a range of 13100-12800 levels by next week. The study of long term charts like weekly and monthly time frame signal crucial overhead resistance for the market around 13100-13150 levels. The lower area of 12850-12750 is going to be an important base for the Nifty and a decisive move below this area could open a sharp downward correction in the market.”