NIFTY OUTLOOK & OPTION TRADING TIPS FOR 27 NOVEMBER 2024

After a sharp rally in the last two trading sessions, Indian markets struggled to maintain momentum today as global trade concerns resurfaced. President-elect Donald Trump’s tariff announcements on imports from China, Mexico, and Canada reignited fears of potential disruptions to global trade, prompting investors to book profits.

Adding to the uncertainty were geopolitical tensions, with reports of escalating conflict between Russia and Ukraine, as well as Iran's plans to expand its nuclear fuel production. On a brighter note, progress toward a ceasefire agreement between Israel and Hezbollah provided some relief.

Key Indices Performance

• Nifty 50: Closed with a slight drop of 0.11%, settling at 24,194 points.
• Sensex: Declined by 0.13%, closing at 80,004 points.
• Nifty Midcap 100: Continued its rally, rising 0.33% to close at 56,057 points.
• Nifty Smallcap 100: Outperformed, gaining 0.85% to settle at 18,269 points.

Sectoral Highlights

1. Top Gainers

   • Nifty IT Index: Achieved a record high of 44,244 points, driven by a spike in the dollar index.
   • Nifty FMCG Index: Rose 1%, supported by expectations of increased rural spending following the BJP’s electoral victory in Maharashtra.
   • Nifty Realty Index: Gained 0.60%, continuing momentum from a 2.21% surge in the previous session, buoyed by political continuity in Maharashtra.

2. Top Losers

   • Nifty Auto Index: Declined by 1.30%, as major players like Tata Motors, Bajaj Auto, and Maruti Suzuki India fell by up to 3.2%.
   • Nifty Energy, Pharma, Infra, Oil & Gas, and PSE Indices: All ended in negative territory, reflecting subdued investor sentiment.

Stock Performance

• Top Gainers

  • Shriram Finance: Led the gains with a 3.4% rise.
  • Other Gainers: Britannia Industries, Infosys, Bharat Electronics, Asian Paints, JSW Steel, Wipro, and TCS posted gains of over 1%.

• Top Losers

  • Adani Group Stocks: Adani Enterprises fell by 5.2%, and Adani Ports & SEZ declined by 3.5%.
  • Auto Stocks: Bajaj Auto, Mahindra & Mahindra, Tata Motors, Eicher Motors, and Hero MotoCorp registered significant losses.
  • PSU Stocks: Coal India, ONGC, Power Grid, and BPCL faced selling pressure, declining by 1-1.5%.

Market Sentiment

Global uncertainties weighed heavily on investor sentiment, with trade tensions and geopolitical risks taking center stage. However, political stability in Maharashtra and strong performance in IT and FMCG sectors provided pockets of optimism.

Outlook

Market participants are likely to remain cautious amid persistent global uncertainties. Upcoming developments in international trade relations and geopolitical tensions will be closely monitored. Meanwhile, domestic factors such as state-level political developments and sectoral performances could influence short-term trends.