Following a positive start on the bourses on November 12, benchmark indices Nifty and Sensex traded in the negative in the afternoon after a sharp downturn in auto and FMCG counters spoilt the overall mood in the market. This comes ahead of the October Consumer Price Index data scheduled for release later today.

At noon, the Sensex was down 29.33 points or 0.04 percent at 79,466.82, and the Nifty was down 15.80 points or 0.07 percent at 24,125.50. About 1736 shares advanced, 1555 shares declined, and 83 shares unchanged.

The broader markets, mainly the mid-small cap index, didn't mirror negative trends, breaking into the green after the two rose 0.3 and 0.7 percent, respectively. The broader market has gained nearly 25 percent since the start of the year, comfortably outpacing Nifty's gain of 13 percent during the same period. India VIX, the index that measures market volatility, slid 1 percent to hover just over the 14 levels.

Sectoral Trend

Nifty Auto was the biggest loser after it fell 1 percent. Major's like Tata Motors, M&M, Maruti Suzuki, M&M, and Bajaj Auto dragged the index lower. The FMCG index followed next after Britannia Industries, Nestle and HUL all traded in the red.

Among gainers, Nifty Realty was the brightest spark, rising a massive 2 percent. A rally in DLF, Macrotek Developers, and Godrej Properties boosted sentiment in the sector. To be sure, the index has rallied 26 percent since the start of the year, comfortably outpacing Nifty's gain of 13 percent over the same duration. Healthcare and Pharma stocks also edged higher but it wasn't enough to help the markets sustain early momentum.

Fundamental View

In this consolidating market, two strong forces are at play. First, the ongoing FII selling has favoured the bears, putting downward pressure on the market. Second, sustained DII buying has supported the market, preventing a steep decline. The market's direction in the coming days will hinge on the relative strength of these two forces, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "In this environment, fundamentally strong and fairly valued stocks, especially in leading banking, are likely to outperform," he added.

Technical View

The Nifty index has been moving within a narrow range of 24,000 to 24,350, without showing a clear trend in either direction. However, a key indicator suggests that there might be potential for an upward movement. Also, the chart shows a pattern that could indicate a possible reversal to the upside. If momentum picks up, Nifty could rise towards 24,500-24,550, with strong support at 24,000, says Mandar Bhojane of Choice Broking.

He added that Bank Nifty, it's been trading in a sideways pattern, bouncing between 51,200 and 52,400. There is selling pressure at the higher levels, but buying interest at lower levels keeps it stuck in this range. If Bank Nifty breaks above 52,400, it could move higher to 52,800-53,000. On the downside, immediate support is at 51,200 and 51,000

Key Nifty Gainers

Trent, ICICI Bank, and Sun Pharma

Key Nifty Losers

Britannia Industries, Tata Motors, and Asian Paints

Key Sensex Gainers

ICICI Bank, Sun Pharma, and Bharti Airtel

Key Sensex Losers

Tata Motors, Asian Paints, and HDFC Bank

Stock Moves

SignatureGlobal: Shares surged 5 percent following an upgrade by Kotak Institutional Equities, which raised the stock's rating to 'Buy' from 'Add' and also upgraded the target price to Rs 1,570 from Rs 1,555. Kotak's upgrade came on the back of Signatureglobal's robust sales performance, solid cash generation, and attractive valuations.

Rategain Travel: Shares took a beating on November 12, plummeting as much as 12 after brokerage firm Kotak Institutional Equities downgraded its rating on the stock to a 'reduce' from the previous 'add' call, citing lofty valuations.

Triveni Turbine: Shares witnessed strong buying action on November 12, surging nearly 12 percent after the company's solid earnings performance in the July-September quarter impressed investors. Triveni Turbine reported a 42 percent year-on-year spike in its consolidated net profit to Rs 91 crore for the September quarter, driven by strong revenue growth.