Nifty’s receives fresh drubbing…

*Review & Preview @4PM —— Thursday, November 21st 2024*

NIFTY (-169, 23350)
Sensex (-423, 77156)
Bank Nifty (-254, 50373)

Nifty’s gets fresh drubbing.

The latest leg down is linked to Indian billionaire Gautam Adani who has been charged with fraud in the US, which has accused him of orchestrating a $250m bribery scheme and concealing it to raise money in the US.

Amidst this backdrop, Nifty PSU Banks index, tumble 2.65%. LIC loses nearly ₹12,000 crore in seven Adani shares in a day on Gautam Adani’s civil indictment news.

Adani Group market cap plummets Rs 2.2 lakh crores. Adani Enterprises (-23%) Adani Port (-13.95%) ACC (-7.32%) Ambuja Cement (11.73%) Adani Power (-8.52%) Adani Wilmar (-10%) Adani Total Gas (-10%)

Mr Adani’s business empire extends from ports and airports to renewable energy. The Adani Group has denied the allegations, calling them “baseless”.

# *Sentimental Overview:*

# Nifty and Sensex drop around 0.72%. India VIX at 15.97. Technically, Nifty ended lower and way below its 200 DMA (23583).

The trading theme shall revolve around continued

1) Geopolitical tensions
2) Spiking oil prices at $69.50 per barrel
3) Strengthening of US Dollar.The US Dollar index flirts with its 2-year high, now at 106.78 levels. The US Dollar benefits from rising US Treasury bond yields.
4) The December US interest-rate cut remains in limbo, with traders uncertain after Powell has said the Fed is in no rush to cut rates.

*Blame the pessimism also on:*

1) FII exodus has crossed Rs 34,348 crore this November.

2) Increased skepticism about Corporate India’s Q2 earnings disappointment.

# Meanwhile, exit polls show a bumper win for the BJP-led Mahayuti alliance. The counting of votes is scheduled for November 23.

 

# Technical Overview:

# Technically speaking, any near-term rebound could be a Dead Cat Bounce!

Strictly speaking, ‘Dead Cat Bounce’ is a temporary price recovery following losses, that is followed by more losses.

Immediate downside risk on Nifty is placed at 23157 mark; aggressive downside targets are at Nifty’s psychological 23000 mark.

# Confirmation of strength only on any close above Nifty 23750.

# Outperforming Nifty Sectors:
Nifty REALITY (+1.02%)

# Underperforming Nifty Sectors:
Nifty PSU BANKS (-2.65%)
Nifty METAL (-2.41%)
Nifty MEDIA (-2.37%).

# Bulls of the day:
POWERGRID (+3.25%)
ULTRACEMCO (+1.70%) HINDALCO (+1.20%)
APOLLOHOSP (+0.88%)
GRASIM (+0.88%)

# Bears of the day:
ADANIENT (-23.44%)
ADANIPORTS (-13.23%)
SBILIFE (-3.15%)
SBIN (-2.75%)
NTPC (-2.51%)
(Source NSSEINDIA.com)

 

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