Nifty Bears all the way!

*Review & Preview @4PM —— Tuesday, November 19th 2024*

NIFTY (+65, 23519)
Sensex (+239, 77578)
Bank Nifty (+263, 50627)

Bears all the way!

Nifty’s latest leg down is linked to escalating Russia-Ukraine geopolitical tensions.

The Russian President Vladimir Putin has approved a change to the country’s nuclear doctrine where they are threatening a nuclear response amid Ukraine’s use of Western missiles against Russia.

Bottom-line: Nifty and Sensex drop over 1% from day’s high. India VIX jumps 6.64% at 16.17.

# *Sentimental Overview:*

Nifty snaps its 7-day losing streak but that said volatility was hallmark of today’s trade as focus turns towards Maharashtra and Jharkhand state assembly elections; counting of votes for the two states will take place on November 23.

Technically, Nifty ended lower and way below its 200 DMA (23573).

*Blame the pessimism on:*

1) FII exodus has crossed Rs 30,936.60 crore this November.

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

# *Markets also focused on Maharashtra Elections:*

Well, there will be no trading activity at Dalal Street on November 20 as voters move to cast their ballots for 288 for Maharashtra Assembly seats.

# The Maharashtra Assembly elections likely to be a fierce contest between the ruling Mahayuti alliance and the opposition Maha Vikas Agha (MVA)

# The Mahayuti alliance consists of three main parties and has divided the seat shares as follows:

1) BJP will contest 148 seats
2) Shiv Sena led by Chief Minister Eknath Shinde contesting 80 seats
3) Ajit/Sharad Pawar’s NCP 53 seats

# The opposition Maha Vikas Aghadi (MVA) has divided the seat shares as follows:

1) Uddhav Thackeray’s Shiv Sena (UBT) will contest in 83 seats.
2) Congress will contest in 103 seats.
3) Sharad Pawar’s NC in 87 seats

# Maharashtra has about 9.7 crore eligible voters. This includes 4.97 crore male voters and 4.66 crores female voters. There are 1.85 crore young voters (age 18-29), including 20.93 lakh first-time voters (age 18-19).

# Why Maharashtra elections influence investors sentiments?

1) Maharashtra is an economic powerhouse contributing 15% to India’s GDP.
2) Mumbai is India’s financial hub with many corporate headquarters.
3) The election outcome could influence policy decisions.
4) Maharashtra election results could provide insights into the broader political climate of India.

# 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 24107.

The fear index, India VIX, which gauges the volatility in the Indian stock markets, is consolidating at 16.17 points.

# Outperforming Nifty Sectors:
Nifty MEDIA (+2.14%)
Nifty REALITY (+1.16%)
Nifty AUTO (+1.09%)

# Underperforming Nifty Sectors:
Nifty METAL (-1.03%)
Nifty PSU BANKS (-0.83%)
Nifty ENERGY (-0.64%).

# Bulls of the day:
M&M (+3.15%)
TECH MAHINDRA (+1.88%)
HDFC BANK (+1.81%)
DR REDDYS LAB (+1.66%)
EICHER MOTORS (+1.59%)

# Bears of the day:
SBI LIFE (-2.92%)
HINDALCO (-2%)
RELIANCE (-1.85%)
HDFC LIFE (-1.67%)
SBI (-1.46%)
(Source NSSEINDIA.com)

 

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