The Indian equity market rebounded strongly on November 29, 2024, erasing some of the previous session's losses. Both Sensex and Nifty indices closed on a high note, bolstered by gains in key sectors like pharma, energy, and auto.
Key Highlights:
Sensex and Nifty Performance:
- Sensex: Gained 759.05 points (+0.96%), closing at 79,802.79.
- Nifty 50: Rose by 216.90 points (+0.91%), settling at 24,131.10.
Market Breadth:
- Advancing stocks: 2241
- Declining stocks: 1564
- Unchanged: 88
Volatility Index:
- India VIX cooled off by 5.12% to 14.43, signaling reduced market volatility.
Sectoral Performance:
Top Gainers:
- Auto, Energy, Pharma, Media: Advanced by 1-2%, leading the day's rally.
- Key performers: Bharti Airtel, Cipla, Sun Pharma, M&M, Adani Ports.
Underperformers:
- Realty and PSU Bank indices closed in the red.
- Notable laggards: Power Grid Corp, Shriram Finance, Hero MotoCorp, Nestle, Apollo Hospitals.
Indices Movement:
- BSE Midcap Index: Up 0.3%.
- Smallcap Index: Increased by 0.7%.
Technical Analysis:
Nifty 50:
- Reclaimed the 21-Day Exponential Moving Average (DEMA), indicating strength.
- Formed a green candle on the daily chart, showing potential for further upward momentum.
- Resistance Levels: 24,350–24,360.
- Support Levels:
- Immediate: 24,080 (21-DEMA).
- Critical: 23,570 (200-DEMA).
Bank Nifty:
- Closed at 52,056 after initial volatility, consolidating in a narrow range.
- Resistance Levels: 52,500–52,600.
- Support Levels: 51,540 (21-DEMA).
- Technical Indicators: Formation of an inside bar on the daily chart and a doji candle on the weekly scale point to market uncertainty.
Sectoral Insights:
Pharma & Healthcare:
Renewed growth due to strong earnings and moderated valuations.Energy & Auto:
Continued strength amid robust demand, benefiting from the festive season.IT and Banking:
Rebounded from recent declines and remain key to determining the broader market direction.Smallcaps and Midcaps:
Smallcaps showed strong relative performance (+0.7%), while midcaps ended flat (+0.3%).
Global Sentiment:
Global market sentiment remained muted due to the yen's appreciation and persistent inflation in Japan.
Domestic markets reflected confidence as Q2 GDP slowdown to 6.5% was already priced into corporate earnings.
Investor Strategy:
- Stock Selection: Focus on large-cap stability and selective smallcap opportunities with strong performance.
- Profit Booking: Traders are advised to book profits near resistance levels and await fresh breakouts, particularly in the Nifty above 24,360 and Bank Nifty above 52,600.
- Sectoral Focus: Pharma, auto, and energy sectors remain attractive for short-term gains. IT and banking performance should be monitored closely.
Conclusion:
The broad-based rally, driven by large-cap stocks, signifies resilience in the Indian equity market. With reduced volatility and sectoral strength, investors are advised to adopt a balanced approach, leveraging opportunities in both defensive and cyclical sectors while being cautious at resistance levels.
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