Taking Stock | Market snaps 4-day losing streak; Nifty ends above 17,500, mid, smallcaps outshine

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Market snapped a four-day losing streak to end on a positive note on November 23, amid high volatility. At close, the Sensex was up 198.44 points, or 0.34%, at 58,664.33, and the Nifty was up 86.80 points or 0.50% at 17,503.30.

Markets started the day gap down and remain volatile during the day, but managed to recoup intraday losses in the final hour of trading and ended on positive note, mainly supported by metal, PSU bank and power stocks.

“Domestic equities clawed its way out of the recent downslide boosted by metal, PSU bank and pharma stocks with mid and small caps outperforming the benchmark indices,” said Vinod Nair, Head of Research at Geojit Financial Services.

“US markets witnessed a late sell-off yesterday despite the re-nomination of Jerome Powell as the Fed chair. Oil and gas indices remained under pressure amid reports of the US releasing its emergency oil reserves to keep the rising crude oil prices under control.”

“The telecom sector was in focus today as the sector majors initiated rate hike, which will enhance profitability,” Nair added.

Broader markets outperformed the benchmark indices – BSE midcap index added 1.6 percent and the smallcap index rose 1.8 percent.

JSW Steel, Coal India, Power Grid Corp, NTPC and Tata Steel were among major gainers on the Nifty. Losers included IndusInd Bank, Asian Paints, Infosys, Bajaj Auto and Wipro.

Among sectors, Nifty metal index gained 3.3 percent, while pharma, energy and PSU Bank indices rose 1-2 percent.

Stocks and sectors

On the BSE, power and metal indices added over 3 percent each, and capital goods, healthcare, oil & gas, realty indices up 1-2 percent.

Among individual stocks, a volume spike of more than 1,500 percent was seen in Sun TV Network, Nalco, BHEL and SAIL India.

Long buildup was seen in SAIL, Nalco and ONGC, while short buildup was seen in Sun TV Network, Wipro and Muthoot Finance.

Over 150 stocks, including Bharti Airtel, Birlasoft and Lloyds Steels Industries hit a 52-week high on the BSE.

Technical View

The Nifty formed a bullish candle on daily scale but has been forming lower highs – lower lows from the last five sessions.

Now Nifty has to hold above 17,500 zones, for an up move towards 17,650 and 17,777, while on the downside support is intact at 17,350 and 17,200 levels, said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for November 24

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

For day traders, 17,400 would be the key level to watch out for. Above the same, a pullback rally can continue up to 17,600-17,650 levels. On the flip side, below 17,400, there is a strong possibility of one more leg of correction till 17,330-17,280.

Palak Kothari, Research Associate at Choice Broking:

At present, the Nifty has immediate support at 17,200 while resistance comes at 17,600 levels, crossing above the same can show 17,800-17,900 levels.

On the other hand, Bank Nifty has support at 36,300 levels, while resistance is at 38,000 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

While we closed in the green, it cannot be summarized that we are out of the bearish woods. The Nifty would need to get past the 17,800-17,900 levels to restart the upward trajectory.

Until then, the markets are sensitive to price and volume and a little shift in the sentiment can result in a downward spiral, which can take the index to 16,900-17,000. Extreme caution is advised as we are in volatile times.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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