Date: 20th November 2023
Technical Overview – Nifty 50
The Benchmark index at the start of the week witnessed a flat opening marginally above 19,700 levels traded within the predefined narrow range for the entire day and formed an inside day bar on the daily chart.
The breadth ratio at the start of trade was in the favor of bulls but as the day progressed the losses increased and the breadth ratio closed towards the 1:1 levels. On the daily chart, INDEX is consolidating above the levels of 50 EMA and defining strength, whereas the structure of the weekly and monthly charts is positively placed, adding strength to the overall price pattern.
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.
Technically, Nifty needs to reclaim the 19,900 mark to unleash a fresh upside. Nifty’s biggest supports are placed at the 19,500 mark near its continuation gap.
Technical Overview – Bank Nifty
The Banking index opened more than 100 points lower and registered an intraday low at 43,450 levels and post that the index found some buying spurt at lower levels and witnessed a falling wedge pattern breakout on the intraday time frame.
Overall, it was a very narrow-range trading session where intraday traders kept guessing the direction of the trade. On the daily chart, the Index formed a DOJI candle stick and the prices continued to trade below its 9 & 21 EMA which intended the overhanging resistance. The momentum oscillator RSI (14) has entered a bearish crossover mode due to a strong sell-off in the banking index.
On the daily chart, Bank Nifty is finding resistance near 43,800 marks, followed by active call writers. Currently, INDEX is trading near the lower demand zone, with support placed at 43,400 marks. A break below 43,400 will trigger panic, and a move above 43,800 will trigger short covering.
- The domestic stock market faced a second consecutive session of decline, influenced by mixed global cues.
- The day commenced with subdued trading, mostly constrained within a narrow range.
- Selling pressure in autos and FMCG shares led the Nifty to dip below 19,700, although gains in IT and healthcare shares mitigated some intraday losses.
- Market sentiment felt the strain of elevated long-term interest rates and a weakening global economy.
- However, reduced selling activities by Foreign Institutional Investors (FIIs) lent support to the domestic market despite these challenges.
- Shares in Europe and Asia were mixed on Monday as investors watched for changes to Chinas benchmark lending rates.
- The Peoples Bank of Chinas one-year loan prime rate is currently at 3.45%. The five-year benchmark loan rate stands at 4.2%. This is the third straight month that the People? Bank of China has held the one-year LPR after lowering it from 3.55% to 3.45% in August. The five-year LPR meanwhile, has been held at 4.2% for five consecutive months, having been last lowered in June from 4.3%.
- US stocks ended higher on Friday and clinched a third straight winning week amid a red-hot November rally. Those gains were sparked by tame U.S. inflation data that gave hope to investors that the Federal Reserve’s tough stance on rate policy may be in the rear-view mirror.
Stocks in Spotlight
- Mankind Pharma Limited surged 4.79% to touch an all-time high after the pharmaceutical company was added to the FTSE All-World, Large-Cap, Total-Cap, and All-Cap indices, marking a significant recognition for the Indian company. Mankind Pharma’s entrance into the Large-Cap index underscores its position as a key player in India’s pharmaceutical scene, backed by a strong market valuation. In the second quarter, the company saw significant growth across segments, driving a 21% rise in consolidated net profit to ₹511 crore. Revenue from operations climbed to ₹2,708 crore, up from ₹2,425 crore in the same period last year.
- Tata Investment Corporation surged over 15% to a new 52-week high on November 20, continuing its impressive run for the second day. The stock had surged up to 20% in the prior session. This climb precedes the Tata Technologies IPO opening for public subscription on November 22. Tata Technologies, a subsidiary of Tata Motors, has Tata Investment Corporation as a promoter group entity of the auto major.
- Nykaa shares surged over 5% to an 11-month high, with a 15% gain in the last 5 trading sessions. The rebound in the fashion business contributed to the positive investor sentiment, offsetting slow growth in the BPC segment. Closing 3.1% higher, the stock has risen over 19% since the September quarter results. In Q2 FY2024, Nykaa reported a 50% YoY rise in net profit to ₹7.8 crore, and a 25% YoY growth in total GMV to ₹2,943.5 crore.
News from the IPO world🌐
- Fedbank Financial Services IPO opens on November 22
- IREDA IPO to open on November 21
- Tata Tech IPO opens for subscription under pre-apply mode
Day Leader Board
Nifty 50 Top Gainers
Nifty 50 Top Losers
|Top Sectors||Day change (%)|
|NIFTY PSU BANK||0.1|
|NIFTY HEALTHCARE INDEX||0.1|
Advance Decline Ratio
|Advance/Declines||Day change (%)|
Numbers to track
|Indices Name||Latest||% 1D||% YTD|
|Dow Jones (US)||34,947||0.0 %||5.5 %|
|10 Year Gsec India||7.3||0.60%||-1.00%|
|WTI Crude (USD/bbl)||73||(4.9) %||(5.2) %|
|USD/INR||83.21||0.1 %||0.7 %|
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