Date: 16th November 2023
Technical Overview – Nifty 50
The Frontline index continued to trade higher and reclaimed the 19,800 mark on 16th November, after forming a continuation gap in the previous trading session. The index on 16th November witnessed a flat opening near 19,700 levels and as the day progressed the prices started to move higher with a constructive bullishness.
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 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, gates have opened for a test of Nifty’s intermediate high at 19,900 mark. The immediate support for the index is placed at 19,650 levels.
Technical Overview – Bank Nifty
The Bank Nifty on 16th November witnessed a flat opening near 44,250 levels and prices continue to hold above 44,300 for the majority of the time. The Banking index found strong resistance near 44,400 levels and witnessed a sharp profit booking in the last 30 minutes of trade and prices drifted below 44,200 levels and closed in the red.
The banking index on the 30-minute chart has given a rising wedge pattern breakdown and prices are trading below the lower band of the pattern. On the daily chart, prices are sustaining above their short and medium-term exponential moving average, and prices are sustaining above their continuation gap.
The oscillator continues to hover above 50 levels with a bullish crossover on the cards. Technically the immediate hurdle for the Bank Nifty is placed at 44,450 levels and if prices cross above the same the gate is wide open till 45,000 levels.
- The domestic stock market showed resilience, marking its second consecutive day of gains despite notable volatility.
- Continuous buying in IT and healthcare sectors balanced end-of-day profit booking, supporting the positive momentum.
- Global market trends, like softer US inflation data and reduced bond yields, primarily drove this positive trajectory.
- Volatility in trading was observed due to the expiry of weekly index options on the NSE.
- The Nifty50 concluded trading above 19,750, fluctuating between a low of 19,627 and a mid-afternoon peak of 19,875.25.
- The S&P BSE Sensex surged by 306.55 points or 0.47% to reach 65,982.48, while the Nifty 50 index gained 89.75 points or 0.46%, closing at 19,765.20.
- Markets in Europe traded mixed while most Asian stocks declined on Thursday as investors digested high-level discussions between U.S. President Joe Biden and Chinese President Xi Jinping.
- Biden and Xi met Wednesday outside of San Francisco in their first face-to-face meeting in a year. The talks were on the sidelines of the Asia-Pacific Economic Cooperation conference and were a part of efforts between the U.S. and China to boost high-level communication amid continued tensions.
- US stocks ended higher on Wednesday, building on the strong rally from Tuesday, on the back of more encouraging inflation data. Another reading on U.S. inflation showed October?s producer price index, which measures wholesale prices, fell by 0.5% to mark its biggest monthly drop since April 2020.
Stocks in Spotlight
- Tata Consultancy Services (TCS) surged by 2.90% following its announcement of setting November 25, 2023, as the record date for the proposed share buyback. The company’s board highlighted the intent of its promoter companies, Tata Sons and Tata Investment Corporation, to participate in this initiative. Tata Sons plans to tender 2,96,03,690 shares, while Tata Investment Corporation aims to offer 11,358 shares as part of the buyback program.
- TCS witnessed a rise of over 2%, reaching Rs 3,479, following the company’s announcement of November 25 as the record date to ascertain eligible shareholders for their buyback initiative. The IT company aims to repurchase up to 40.96 million fully paid-up equity shares, each valued at Rs 1, priced at Rs 4,150 per share, with a total expenditure capped at Rs 17,000 crore. This buyback scheme was initially disclosed on October 11.
- Coal India Ltd dipped by 0.6% to Rs 348 despite the company’s Q2 report revealing a 12.5% surge in consolidated net profit, totaling Rs 6,800 crore. This growth was propelled by increased sales and greater profit contributions from the company’s joint ventures (JV).
News from the IPO world🌐
- ASK Automotive IPO closes with 10% rally on debut
- 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||1.13|
|NIFTY CONSUMER DURABLES||1.04|
Advance Decline Ratio
|Advance/Declines||Day change (%)|
Numbers to track
|Indices Name||Latest||% 1D||% YTD|
|Dow Jones (US)||34,991||0.5 %||5.6 %|
|10 Year Gsec India||7.2||0.10%||-1.30%|
|WTI Crude (USD/bbl)||77||(2.0) %||(0.4) %|
|USD/INR||83.11||(0.2) %||0.5 %|
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