Indian equity markets ended the day on a positive note amid heightened volatility. The benchmark indices, Sensex and Nifty, managed to close in the green but well below their intraday highs due to late-session selling pressure.
Market Highlights
- Sensex: Closed at 77,578.38, up 239.37 points (0.31%).
- Nifty 50: Closed at 23,518.50, up 64.70 points (0.28%).
- Market Breadth:
- Advances: 2,197 stocks.
- Declines: 1,591 stocks.
- Unchanged: 95 stocks.
Key Market Trends
- Opening Momentum: Strong cues from Asian markets and bottom-fishing supported a robust start, but gains faded in the second half.
- Sectoral Performance:
- Gainers: Media, Realty, Auto, IT, and Pharma (up 0.5%-2.5%).
- Laggards: Metal, Oil & Gas, and PSU Banks (down 0.5% each).
- Broader Indices: Midcap and Smallcap indices outperformed, gaining nearly 1% each.
Technical Analysis
Nifty:
- Resistance at 23,733 (40-hour average).
- Strong support at 23,300, with 23,800 necessary for a trend reversal.
- Formed a Doji candlestick pattern, signaling indecision.
- Fibonacci retracement at 23,180 indicates a potential downside target.
Bank Nifty:
- Closed near 50,800, falling short of intraday highs.
- Weakness expected to persist with support at 49,700-49,800.
- Resistance zone at 50,800-50,900.
Key Drivers
- Profit Booking: Investors used intraday surges to book profits, reflecting caution ahead of Maharashtra Assembly elections.
- Geopolitical Tensions: Reports of Ukraine's first ATACMS missile strike on Russian border regions heightened uncertainty.
- Foreign Institutional Investor (FII) Activity: While the pace of outflows has eased, consistent selling remains a key overhang.
- Earnings Impact: Weak Q2 earnings and stretched valuations continue to weigh on market sentiment.
Top Gainers & Losers
Gainers:
- M&M: +3% (boosted by CLSA’s ‘outperform’ rating, with a target price of ₹3,440).
- Tech Mahindra, HDFC Bank, Trent, Eicher Motors.
Losers:
- SBI Life Insurance, HDFC Life, Reliance Industries, Tata Consumer, Hindalco.
Outlook
- Nifty: Bears maintain control, and "sell on rise" remains the dominant strategy unless a decisive move above 23,800 is achieved.
- Sector Focus: Realty and Auto sectors are seeing renewed interest due to strong festive sales and correction-driven value buys.
- Investment Strategy:
- Stick to quality large-cap stocks.
- Avoid rushing into mid and small caps despite their recent outperformance.
Market Closure
Markets will remain closed on November 20, 2024, for the Maharashtra Assembly elections.
Disclaimer: This report is for informational purposes only and should not be considered as financial
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