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)

 

Disclaimer/ Disclosure: The investments & trading ideas recommended in the market analysis, research reports, etc. may not be suitable for all investors. This article or data points does not construe investment advice as stock market investments are subject to market risks so please refer to your financial consultant advice before Investing or trading. All information is a point of view, and is for educational, Learning and informational use only. The author or the group admin accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investors must make their own investment decisions based on their specific investment objectives, goals and financial position only after consulting with registered market intermediaries.

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