Stock market today: Sensex, Nifty 50 snap 7-day losing run despite sharp profit taking at higher levels

Stock Market Today: Stock Market Today: Rising tensions between Russia and Ukraine weighed heavily on the markets during the final hour of trade on Tuesday, November 19, causing both frontline indices to retreat sharply from their intraday highs. Profit booking at higher levels also contributed to the reversal in stock prices. However, the indices managed to close the session in the green, breaking a seven-day losing streak.

According to the latest media reports, President Vladimir Putin has approved an updated nuclear doctrine that expands Russia's use of atomic weapons, just days after the US granted Ukraine limited permission for long-range missile strikes on Russian territory. Ukrainian forces reportedly carried out their first strike in a border region within Russia using an ATACMS missile, as per Reuters.

Amid escalating tensions between Russia and Ukraine, investors flocked to safe-haven assets, causing a sharp retreat in stocks. As a result, the Nifty 50 plunged 262 points from its intraday high to close at 23,518, up 0.28% from the previous close, while the Sensex dropped 873 points from the day's high to end the session with a 0.31% gain, closing at 77,578.

The broader market also retreated from its intraday highs but ended with sharp gains, with the Nifty Midcap 100 index closing the session up 0.93% at 54,548, while the Nifty Smallcap 100 index ended with a gain of nearly 1%, closing at 17,677.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services said, “A strong bounce back due to bottom fishing was short-lived as caution prevails in the market. Investors tend to use every opportunity to book profit amidst consistent FII selling and weak Q2 earnings.”

"Profit booking was also seen ahead of the upcoming Maharashtra state election. The recent correction in valuation suggests a potential pause in further price erosion. However, the recovery will depend on an uptick in earnings which is likely to rebound due to the likely spurt in central and state expenditure in H2," he added.

Among the sectoral indices, Nifty Media was the top performer, rallying 1.48%, followed by Nifty Auto, which gained 1.37%. Other indices such as Nifty Consumer Durables, Nifty Pharma, and Nifty IT posted gains ranging from 0.7% to 1.16%. On the downside, the Nifty Metal index fell by 0.85%, while the Nifty PSU Bank index tumbled 0.62%.

Among individual stocks, Mahindra & Mahindra gained 3.6% after CLSA maintained its 'outperform' rating with a target price of ₹3,440, citing a significant increase in domestic electric SUV sales over the next couple of years. It was followed by Tech Mahindra, HDFC Bank, Trent, and seven other stocks, all closing with gains of over 1%.

On the downside, SBI Life Insurance lost 2.5%, while Hindalco Industries, Reliance Industries, HDFC Life Insurance, Tata Consumer Products, SBI, and six other stocks ended with losses ranging from 1% to 1.5%.

Nifty 50: Key levels and trends

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty remained volatile throughout the session due to a sudden spike in geopolitical tensions between Russia and Ukraine, causing the index to fall below its 200-day moving average (DMA) once again. On the technical front, the Nifty managed to hold above its recent low, indicating a potential bullish reversal as long as it does not breach the 23,350 level. Conversely, if the index sustains above the 23,500 level, it could move toward the 23,700–23,800 zone."

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.