Market Report – November 22, 2024
Key Highlights:
- Nifty 50: Closed at 23,907, up 557 points (2.39%).
- Sensex: Closed at 79,117, up 1,961 points (2.54%).
- India VIX: Rose by 0.67% to 16.10, indicating slightly increased volatility.
- Market Breadth:
- Advancing shares: 2,340
- Declining shares: 1,418
- Unchanged shares: 118
Sectoral Performance:
All sectoral indices ended in the green:
- Top Gainers:
- PSU Banks, IT, FMCG, Energy, Realty: Up 2-3%.
- Broader Indices:
- BSE Midcap: Gained 1.3%.
- BSE Smallcap: Rose nearly 1%.
Top Nifty Gainers:
- State Bank of India
- TCS
- ITC
- UltraTech Cement
- Titan Company
Top Nifty Loser:
- Bajaj Auto was the only stock to decline.
Technical Overview:
Nifty 50:
- Formed a large green candle on the daily chart, signaling strength.
- Broke the 23,800 barrier and closed above it.
- However, it remains below the 21-day exponential moving average (24,040).
- Immediate Resistance: 24,040–24,050.
- Immediate Support: 23,800.
- Short-Term Strategy: If Nifty sustains above 24,050, it may test 24,200-24,300 levels. A buy-on-dips approach is recommended.
Bank Nifty:
- Closed at 51,135, up significantly.
- Sustained above the hammer candle high of 50,652, breaking the resistance at 50,984.
- Key Levels:
- Support: 50,980.
- Resistance: 51,500–52,000.
- Outlook: Positive; further upside likely if the index holds above 50,980.
Market Drivers:
- Relief Rally: Markets surged over 2% amid strong across-the-board buying, reversing a prior downtrend.
- State Election Sentiment: Exit polls favoring BJP in upcoming elections boosted investor confidence.
- Attractive Valuations: After weeks of selloff, large-cap stocks appeared appealing, driving buying interest.
- Sector Leadership: IT and Realty sectors led the rally with gains over 3%.
- Global Tailwinds:
- Decline in Japan’s October inflation.
- Announcement of a 39 trillion yen stimulus package in Japan.
- Moderation in Political Risks: Both global and domestic political tensions eased, providing relief to markets.
Outlook:
- Key Catalysts:
- State election results on Monday are likely to set the tone for early trading next week.
- Global market cues and corporate earnings expectations for H2 FY24 will remain crucial.
- Nifty Strategy:
- A decisive breakout above 24,050 could propel Nifty to 24,350.
- Failure to sustain above 24,050 may trigger profit booking.
- Sector Focus:
- IT and Banking sectors exhibit strong momentum.
- Broader market participation is expected but may lag large caps.
Conclusion:
The Indian markets showcased resilience with a strong rally driven by positive global cues, attractive valuations, and upbeat sentiment around state election exit polls. Immediate resistance levels remain critical for both Nifty and Bank Nifty, with a buy-on-dips strategy favored in the short term. Selective focus on IT, banking, and high-momentum sectors is recommended for traders.
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