Nifty ended lower for the 7th straight day and way below its 200 DMA (23565).

*Review & Preview @4PM —— Monday, November 18th 2024*

NIFTY (-79, 23454)
Sensex (-241, 77339)
Bank Nifty (+184, 50364)

Nifty continues to attract bears amidst uninspiring Corporate India’s Q2 and persistent selling by FIIs.

Focus turns towards Maharashtra and Jharkhand state assembly elections; counting of votes for the two states will take place on November 23.

Bottom-line: Nifty ended lower for the 7th straight day and way below its 200 DMA (23565).

 

# Sentimental Overview:

Tremors continued at Dalal Street which are simply causing more and more destruction to Nifty bulls’ confidence.

*The nasty script ideally leaves investors to worry a lot as investors fear the brutal sell-off on Dalal Street is likely to get worse.*

*Balme the pessimism on:*

1) FII exodus has crossed Rs 29,533 crore this November.

2) Also, blame the pessimism on:

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

b) Weak leads from Wall Street in Friday’s trade, with the S&P 500 dropping 1.3%, the Dow falling by 305 points, and the Nasdaq losing 2.2% after Federal Reserve Chair Jerome Powell said the Fed is in no rush to cut rates citing the economy’s strength, a solid labor market, and persistent inflationary pressures.

c) Rising US bond yields. (The yield on the 2-year Treasury note was up to 4.367%. The 10-year yield was up to 4.472%).

# Buzzing stocks:

1) NTPC’s wholly owned subsidiary NTPC Green Energy is coming up with an IPO which opens for subscription this Tuesday, November 19th . The IPO ends on Thursday, November 21st. NTPC green energy will the 3rd largest IPO of 2024 (After Hyundai Motor India & Swiggy) with an issue size of Rs. 10,000 crores. NTPC Green Energy’s is eagerly awaited particularly in light of the successful listing of another renewable energy-related IPO, Waaree Energies.

2) NALCO (+8.6%), Hindalco Industries (+3.8%) and Vedanta (+3.6%) shares surged after China’s decision to cancel this tax rebate, which has long supported its export-driven aluminum industry, sparked a sharp rally in aluminum prices on the London Metal Exchange on Friday. The move is expected to curb the excessive supply of Chinese aluminum abroad.

# 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 Nifty’s 200 DMA at 23565 and then 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 15.30 points.

# Outperforming Nifty Sectors:
Nifty METAL (+1.82%)
Nifty FMCG (+1.08%)
Nifty PSU BANKS (+0.65%)

# Underperforming Nifty Sectors:
Nifty IT (-2.22%)
Nifty OIL & GAS (-1.56%)
Nifty MEDIA (-1.37%).

# Bulls of the day:
HINDALCO (+3.79%)
HEROMOTOCORP (+2.69%)
TATASTEEL (+2.33%)
NESTLEIND (+1.47%)
HUL (+1.46%)

# Bears of the day:
TCS (-3.11%)
DRREDDY’S (-2.75%)
INFY (-2.65%)
BPCL (-2.62%)
CIPLA (-2.38%)
(Source NSSEINDIA.com)

 

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