NIFTY OUTLOOK & TRADING TIPS FOR 12 NOVEMBER 2024

Key Indices Overview

• Sensex closed at 79,496, up by 9.83 points (+0.01%).
• Nifty ended at 24,141, down by 6.90 points (-0.03%).

Market Summary

The Indian equity market exhibited significant volatility, with the Nifty oscillating within the 24,000-24,350 range without a clear breakout. While the RSI momentum indicator has shown a bullish crossover, there were mixed signals throughout the session, leading to a flat close.

Technical Patterns and Outlook:

• An inverted hammer pattern on the daily chart suggests a possible bullish reversal. The index may test higher resistance levels at 24,500-24,550 if this pattern holds.
• On the lower end, support is pegged at 24,000.
• A spinning top candlestick pattern emerged, signaling indecision between bulls and bears. A decisive move is needed to break out of this range.

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Sectoral Highlights

• Gainers: Banking and IT sectors supported the market, ending higher by 0.6% and 1% respectively. Select banking and IT stocks provided crucial support amid choppy trading.
• Lagging Sectors: Broader sectors underperformed, with Midcap and Smallcap indices declining by 0.8% and 1%, respectively. Media and Metal sectors were the primary losers, contributing to the downward pressure.

Market Breadth

• Advances: 1,446 shares
• Declines: 2,478 shares
• Unchanged: 116 shares

The broader market sentiment was negative, reflecting overall bearishness, with more declines than advances, notably in midcap and smallcap segments.

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Key Stock Movements

• Top Gainers: Power Grid Corp, Trent, Infosys, HCL Tech, and Tech Mahindra
• Top Losers: Asian Paints, Britannia, Apollo Hospitals, Cipla, and ONGC

Market Influences

• Global Impact: Concerns over international events, especially those related to US policy, continue to influence market sentiment. The IT sector outperformed, partly due to a strong US dollar and anticipated increases in US IT spending.
• Domestic Factors: Investors are awaiting CPI data, as higher food prices may compel the RBI to hold interest rates in the near term. FII actions are a major force behind current market momentum, which remains susceptible to economic and earnings announcements.

Technical Outlook and Strategy

• The broader trend remains choppy with a weak bias. A potential upside bounce may occur around the lower support range of 23,800, while resistance is visible around 24,300.
• The market is likely to stay volatile, and a hedged trading strategy is advised. Traders are recommended to focus on selective stock-picking, particularly in sectors with strong momentum.

Conclusion

The market remains in a high-low consolidation range, lacking a decisive direction. Continued volatility is anticipated as the earnings season wraps up.