The Indian equity markets ended lower on November 21, 2024, amid bearish sentiment triggered by domestic and global headwinds. Both benchmark indices faced selling pressure, with Nifty breaking below 23,400 and Sensex registering a significant decline.
Key Highlights
- Sensex: Closed at 77,155, down 422 points (-0.54%).
- Nifty: Closed at 23,349, down 168 points (-0.72%).
- Market Breadth:
- Advances: 1,180
- Declines: 2,614
- Unchanged: 89
Sectoral Performance
- Gainers:
- Realty: Gained 1%.
- Information Technology: Rose by 0.5%.
- Losers:
- PSU Banks & Media: Declined over 2%.
- Energy, FMCG, Oil & Gas, Auto, Metal: Down 1–2%.
The broader markets underperformed, with the BSE Midcap and Smallcap indices falling by 0.3% and 0.6%, respectively.
Top Gainers and Losers
Top Nifty Gainers:
- Power Grid Corp
- UltraTech Cement
- Hindalco Industries
- HCL Tech
- Grasim Industries
Top Nifty Losers:
- Adani Enterprises
- Adani Ports
- SBI Life Insurance
- NTPC
- SBI
Technical Analysis
Nifty Insights:
- The index closed below 23,400, forming another bearish candle, signaling the continuation of the downtrend.
- Breaching the low of 23,350, Nifty is now poised to test the next critical support at 23,180. A breakdown below 23,000 may intensify selling pressure.
- Immediate resistance is at 23,500 (20-DMA), while a decisive move above 23,800 is required for any meaningful reversal.
Bank Nifty Insights:
- Bank Nifty tested the 200-DMA at 49,800, which provided support, closing at 49,982, down 253 points.
- Crucial support: 49,800–50,000
- Resistance: 50,900–51,000
Market Sentiment
The market sentiment remained weak, impacted by a series of factors:
- Adani Group Concerns: News of bribery allegations against the Adani Group triggered a sell-off in its stocks, heavily influencing the broader market.
- Global Headwinds: Renewed tensions in the Russia-Ukraine conflict and nuclear concerns weighed on investor confidence. Weakness in Asian and European markets further exacerbated the negative sentiment.
- FII Activity: Foreign Institutional Investors (FII) resumed heavy selling, especially in financials, contributing to the decline.
Outlook
- Short-Term Sentiment: Bearish, with immediate support at 23,200. A breach could lead to further downside towards 23,000.
- Upside Potential: Resistance at 23,550, with a rally likely only if the index decisively moves above 23,800.
- Broader View: Stability in global and domestic political scenarios, along with resolution of Adani-related issues, could provide a much-needed boost to market sentiment.
Investors are advised to adopt a cautious approach, focusing on quality stocks with strong fundamentals, particularly in defensive sectors such as IT and Realty.
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