Date: 17th November 2023
Technical Overview – Nifty 50
The Frontline Index on 17th November witnessed a gap-down opening of nearly 80 points but as soon as the market progressed index witnessed a sharp recovery from the lower levels and prices traded above 19,700 levels for the majority of the time.
The Index on the daily chart has witnessed a falling wedge pattern breakout and prices are trading above the upper band of the range. The prices are trading in a higher high higher low formation from the past month, suggesting a base formation at lower levels.
The positive takeaway was that the Nifty Mid-Cap & Small-Cap indices inched higher. The momentum oscillator RSI (14) has finally witnessed a horizontal trend line breakout above 50 levels and has sustained above the same. After a span of one month, The MACD indicator has moved above its line of polarity on the daily time frame.
Technically, Nifty needs to reclaim the 19889 mark to unleash a fresh upside. Nifty’s biggest supports are placed at the 19471 mark.
Technical Overview – Bank Nifty
The Bank Nifty on 17th November witnessed a massive gap down opening of more than 500 points due to negative news from the RBI Governor about a bubble in unsecured retail credit. Due to a gap down opening prices have filled its continuation gap formed on 15th November.
The Banking index on the daily chart has witnessed a falling wedge pattern breakout and prices have also drifted below its 9 & 21 EMA. The momentum oscillator RSI (14) has entered a bearish crossover mode due to a strong sell-off in the banking index.
The Bank Nifty on the weekly chart has formed a bearish candle with a loss of close to 1 percent. The Banking index is trading between the 21 & 50 EMA and a break on either side will decide the further trend for the index.
Technically the immediate hurdle for the Bank Nifty is placed at 44,000 levels and the nearest support is placed at 43,300 levels.
- Domestic equity benchmarks experienced a correction, primarily driven by downward pressure in banks and financial stocks.
- The Nifty settled below 19,750 after reaching a high of 19,806 earlier in the day, showcasing notable volatility.
- Banking and financial sectors encountered turbulence following the Reserve Bank of India’s imposition of stricter norms for personal loans and credit cards.
- Defensive sectors like pharma, healthcare, and FMCG stocks stood resilient amid the overall market weakness.
- Peaking US bond yields and a decline in Brent crude prices provided some support to the market’s performance.
- Noteworthy was the recent transition of Foreign Institutional Investors (FIIs) transitioning into buyers, marking a potential shift in market dynamics.
- European shares advanced, while Asian markets ended mixed on Friday. Weaker U.S. economic data dampened the enthusiasm on Wall Street, leading to a boost in bond prices and a drop in oil prices. Both Brent and U.S. crude declined nearly 5% to reach four-month lows, attributed to concerns about the economy and supply.
- In the U.S., the S&P 500 and the Nasdaq saw minimal gains, while the Dow Industrial Average finished slightly lower, influenced by underperformance from tech and retail giants Cisco and Walmart due to disappointing forecasts. Cisco Systems experienced a significant drop in share value as it reduced its full-year revenue and profit forecasts due to slowing demand for its networking equipment.
- Additionally, U.S. President Joe Biden and Chinese President Xi Jinping agreed to resume high-level military communication, marking their first in-person meeting in a year. This occurred during the Asia-Pacific Economic Cooperation conference in San Francisco, where the leaders expressed a commitment to direct and transparent communication.
Stocks in Spotlight
- JSW Steel experienced a minor decrease of 0.09% in its shares. The company, taking into account the prevailing demand and supply dynamics of Iron Ore in India, made a strategic decision to withdraw its application for the Final Mine Closure Plan. This application, initially submitted on 1st September 2023 to the Indian Bureau of Mines, was intended for the surrender of the Jajang Iron Ore Block situated in Odisha’s Keonjhar district.
- JSW Infrastructure witnessed a significant surge of 3.16% in its stock following the announcement of a major development. The company secured a Letter of Award from the Karnataka Maritime Board, under the Government of Karnataka. This award pertains to the development of an All-weather, deep water, greenfield port situated at Keni in Karnataka. The project is set to be undertaken on a Public Private Partnership basis, signifying a significant advancement for JSW Infrastructure.
- Brigade Enterprises saw a notable increase of 3.40% in its stock. This surge followed an impactful move by the Brigade Group, which inked a joint development agreement (JDA) alongside Krishna Priya Estates and Micro Labs. The collaboration aims to embark on the development of approximately 2 million square feet of residential housing in Bengaluru. This venture holds a Gross Development Value (GDV) estimated at Rs 2,100 crore, signifying a substantial step forward for Brigade Enterprises.
News from the IPO world🌐
- Fedbank Financial Services IPO opens on November 22
- IREDA IPO sets Rs. 30-32 price band for its IPO
- TATA Technology IPO price band set at Rs. 475-500 per share
Day Leader Board
Nifty 50 Top Gainers
Nifty 50 Top Losers
|Top Sectors||Day change (%)|
|NIFTY HEALTHCARE INDEX||1.01|
Advance Decline Ratio
|Advance/Declines||Day change (%)|
Numbers to track
|Indices Name||Latest||% 1D||% YTD|
|Dow Jones (US)||34,945||(0.1) %||5.5 %|
|10 Year Gsec India||7.2||-0.30%||-1.60%|
|WTI Crude (USD/bbl)||73||(4.9) %||(5.2) %|
|USD/INR||83.12||0.0 %||0.5 %|
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