Traders should sell the rally. A close below 19,300 on the Sensex and 5,870 on the Nifty would signal a downtrend
 

The Indian market closed lower despite the Index of Industrial Production rising to 8.2% in October. Presently the benchmarks are struggling to maintain the uptrend, however, a close below 19,300 on the Sensex and 5,870 on the Nifty would signal a downtrend. The National Stock Exchange saw a volume of 71.6 crore shares and an advance-decline volume of 626:824.

The market opened with small gains tracking supportive global cues. Investors awaited industrial output data for October, due later in the day, for further direction. Meanwhile, markets in Asia were mostly in the green in morning trade on speculations that the US Federal Reserve would unveil a new round of bond purchases at the end of its two-day meeting later today. Overnight the US markets closed higher even as some policymakers flayed president Obama for delaying the budget talks.

The Nifty opened 19 points higher at 5,918 and the Sensex started the day at 19,433, up 46 points over its previous close. Gains in auto and IT stocks pushed the benchmarks to their day’s highs in initial trade. At the highs the Nifty rose to 5,925 and the Sensex climbed to 19,479.

Profit booking saw the indices pare their initial gains and were range-bound on both sides of their previous closing levels in subsequent trade. A pick up in India’s industrial output for October did not help matters as the market continued its status quo.

Industrial production growth rate bounced back to a 16-month high of 8.2% in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods. Factory output, as measured by the Index of Industrial Production (IIP), contracted by 5% in October last year.

A flat opening of the key European indices pushed the benchmarks to their lows in noon trade. The Nifty fell to 5,874 and the Sensex went back to 19,317.

The benchmarks continued to remain in the negative and closed lower for the second day in a row. The Nifty closed 11 points (0.18%) down at 5,888 and the Sensex finished trade at 19,355, a loss of 32 points (0.16%) over its previous close.

The broader indices continued to surpass the Sensex as the BSE Mid-cap index rose 0.06% and the BSE Small-cap index gained 0.24%.

The top sectoral gainers were BSE Consumer Durables (up 0.95%); BSE Auto (up 0.94%); BSE IT (up 0.38%); BSE TECk (up 0.34%) and BSE Oil & Gas (up 0.31%). The main laggards were BSE Capital Goods (down 0.99%); BSE PSU (down 0.81%); BSE Metal (down 0.71%); BSE Power (down 0.65%) and BSE Bankex (down 0.32%).

Nine of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bajaj Auto (up 2.57%); Mahindra & Mahindra (up 2.20%); Hero MotoCorp (up 1.92%); Reliance Industries (up 1.53%) and Sun Pharmaceutical Industries (up 1.35%). The main losers were Hindustan Unilever (down 2.65%); BHEL (down 1.98%); GAIL India (down 1.67%); Jindal Steel (down 1.55%) and ONGC (down 1.44%).         

The top two A Group gainers on the BSE were—Satyam Computer Services (up 6.41%) and Bharat Forge (up 5.08%).

The top two A Group losers on the BSE were—Piramal Enterprises (down 5.68%) and Gitanjali Gems (down4.61%).

The top two B Group gainers on the BSE were—Next Mediaworks (up 20%) and Gokul Refoils (up 20%).

The top two B Group losers on the BSE were—Bio Green Papers (down 11.60%) and RFL International (down 10.22%).

Out of the 50 stocks listed on the Nifty, 17 stocks settled in the positive. The major gainers were M&M (up 2.18%); Bajaj Auto (up 1.96%); Hero MotoCorp (up 1.93%); RIL (up 1.58%) and IDFC (up 1.55%). The key losers were HUL (down 2.96%); BHEL (down 2.34%); Grasim Industries (down 2.22%) and HDFC (down 1.89%).

Markets in Asia settled higher on hopes of a fresh round of monetary stimulus by the US Federal Reserve at the end of its two-day meeting later today. Sentiments were also supported by a rise in Japanese machinery orders for the first time in three months.

The Shanghai Composite rose 0.39%; the Hang Seng climbed 0.80%; the Jakarta Composite gained 0.455; the KLSE Composite advanced 0.50%; the Nikkei 225 gained 0.59%; the Straits Times surged 0.75%; the Seoul Composite climbed 0.55% and the Taiwan Weighted surged 1%.

At the time of writing, two of the three key European indices were trading marginally up and the US stock futures were seen with minor gains.

Back home, foreign institutional investors were net buyers of shares totalling Rs1,309.88 crore on Tuesday whereas domestic institutional investors were net sellers of stocks amounting to Rs1,028.35 crore.

Private sector ship-builder ABG Shipyard today said it has bagged a Rs485 crore order to build a cadet training vessel for the Indian Navy. The vessel will be used to provide basic training to Naval cadets and trainees in activities such as disaster relief, search and rescue operations, the company said in a statement. The stock closed 1.20% higher at Rs375 on the NSE.

State-owned ONGC is set to undertake exploratory drilling work in three offshore oil and gas Blocks in Krishna-Godavari basin soon. Once all formalities are completed, the ONGC consortium will spend about Rs1,700 crore on developing these three blocks. The stock declined 1.44% to close at Rs259.90 on the NSE.

Two and three wheeler major TVS Motor on Wednesday said its market share in motorcycles segment is expected to expand by 2.5% with the launch of new bike in 125 cc segment. The company currently has 7% market share in motorcycles segment. TVS Motors settled 2.33% higher at Rs39.50 on the NSE.