Stock market recap: Indian stock market reeled under selling pressure, with frontline indices, the Sensex and the Nifty 50, ending lower for the second consecutive session on Thursday, 6 November. Meanwhile, second-rung mid and small-cap indices suffered deeper cuts of over a per cent each.
The Sensex dropped 148 points, or 0.18%, to close at 83,311, while the Nifty 50 ended with a loss of 88 points at 25,509.70. The BSE Midcap index fell 1.19%, while the BSE Smallcap index crashed 1.53%.
The overall market capitalization of BSE-listed firms dropped to below ₹466 trillion from nearly ₹470 trillion, wiping out about ₹4 trillion in a single session.
Two stock recommendations by MarketSmith India for 7 November
Buy: Emcure Pharmaceuticals Ltd (current price: ₹1,358)
- Why it’s recommended: Strong R&D and diverse product range, global presence with international operations beyond India, established presence in high-growth therapeutic areas, and improving operational metrics and financial risk profile
- Key metrics: P/E: 32.24, 52-week high: ₹1,525, volume: ₹57.90 crore
- Technical analysis: Given trendline breakout
- Risk factors: High regulatory risk in pharma, intense competition in generics/branded generics segment, pressure on margins, raw material/input cost volatility, operational disruptions in supply chain, and legal and compliance issues
- Buy at: ₹ 1,350–1,375
- Target price: ₹1,560 in two to three months
- Stop loss: ₹1,280
Buy: Shipping Corp. of India Ltd (current price: ₹260)
- Why it’s recommended: Leading state-owned carrier with a diversified fleet across tankers, bulk, and liner segments, government support through capital infusion, and strategic fleet expansion plans.
- Key metrics: P/E: 13.41; 52-week high: ₹384.20; volume: ₹478.45 crore
- Technical analysis: Breakout retest
- Risk factors: Highly cyclical business dependent on global trade and freight rate fluctuations, high capital intensity with significant maintenance, and modernization costs.
- Buy at: ₹257–262
- Target price: ₹288 in two to three months
- Stop loss: ₹ 247
How the Nifty 50 performed on 6 November
Indian equities ended lower on 6 November, with Nifty 50 slipping 0.34% to close at 25,509.70, down 87.95 points, while Sensex shed around 300 points amid broad-based selling pressure. The market sentiment remained cautious as investors booked profits ahead of the key US Federal Reserve commentary and lingering concerns over elevated global bond yields and crude oil volatility.
The advance-decline ratio reflected clear bearish undertones, with 795 stocks advancing against 2,304 declining on the NSE. On the sectoral front, Nifty IT (+0.18%) and Auto (+0.06%) were the only gainers, supported by select buying in large-cap tech and auto names. In contrast, Consumer Durables (-1.98%), Media (-2.54%), and Metal (-2.07%) led the laggards. Banking and Financial Services also saw pressure, with Nifty Financial Services down 0.82%.
Nifty 50 continued its short-term corrective phase, forming a second consecutive bearish candle on the daily chart. The index slipped below its minor rising trendline support near 25,600, signalling weakness after failing to sustain above 25,750–25,800 resistance zone.
Price action now suggests a developing descending channel, indicating a loss of near-term momentum. The RSI has retreated sharply to around 49, slipping below 60-, which reflects cooling bullish momentum and a shift toward neutral territory. The MACD has turned negative, with the signal line crossing above the MACD line, reinforcing a bearish crossover and hinting at further downside pressure.
According to O’Neil’s methodology of market direction, the market status has shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
The index extended its corrective phase and slipped below the 21-DMA, reflecting short-term weakness after facing stiff resistance in 26,000–26,300. On the downside, immediate support is placed near 25,400, while a stronger base around 25,000 continues to underpin the broader uptrend.
For the upside to resume, the index needs to form a higher high–higher low structure and sustain above 25,700, followed by a decisive breakout above 26,000, to re-establish bullish momentum.
How did Nifty Bank perform?
Bank Nifty opened on a negative note, showing brief signs of recovery as it entered positive territory during the early session. However, the momentum was short-lived, and the index failed to sustain its gains, ultimately closing in the red. Throughout the trading day, the index remained under selling pressure, extending its decline for the second consecutive session. It is now approaching its 21-DMA, which lies nearly 100 points below the current level, indicating a possible short-term support zone.
The index opened at 57,714.80, touched an intraday high of 57,945.05, and a low of 57,521.00 before settling at 57,554.25. Overall sentiment remained cautious as investors booked profits amid prevailing market volatility.
The index is losing momentum and may retest its 21-DMA near 57,425, signalling short-term weakness. Although it still holds above all its key moving averages, including the 50-DMA at 55,869, the uptrend appears to be losing steam. The RSI has eased to 56 from the overbought zone near 70, indicating fading strength, while the MACD has formed a negative crossover, suggesting a possible shift toward a corrective phase or extended consolidation in the near term.
Currently, the index has immediate support near 57,400, aligned with the 21-DMA. A decisive break below this level could trigger further selling pressure, potentially dragging the index toward 56,000–55,800, where the 50- and 100 DMAs are positioned. Conversely, a sustained move above 58,580–59,000 would indicate a revival of bullish momentum.
Traders are advised to remain cautious, as rising volatility and short-term consolidation patterns suggest the market may continue to fluctuate until a clear trend confirmation emerges. Maintaining a balanced approach is essential in the current uncertain trading environment.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
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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 making any investment decisions.
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