Nifty moves in a mysterious way —— first down, then up and finally ends on sluggish note.

*Review & Preview @4PM —— Monday, November 11th 2024*

NIFTY (-7, 24141)
Sensex (+10, 79496)
Bank Nifty (+316, 51877)

# Nifty moves in a mysterious way —— first down, then up and finally ends on sluggish note.

# Sentiments continue to waver as Nifty Metals and Pharma indices end lower 1% each while Nifty IT hogs’ limelight up 1.23%.

# Asian Paints plunges 8% while Britannia tumbles 6%.

# Sentimental Overview:

# Hurting sentiments were the growing signs of an economic downturn in the Chinese economy after a weak Chinese consumer inflation in October and another decline in factory-gate prices, highlighted deflation risks despite Beijing’s late-September stimulus efforts.

China’s producer prices fell by 2.9% year-on-year in October 2024, following a 2.8% drop in the previous month and going beyond market expectations of a 2.5% decline.

This marked the 25th consecutive month of producer deflation and the sharpest contraction since November 2023, reflecting persistently weak domestic demand despite ongoing efforts by Beijing to break the trend.

# Buzzing stocks:

1) Asian Paints tumbled around 8% amidst disappointment over the company’s underwhelming Q2FY25 performance amid a challenging demand environment and increased competition. The company’s profit-before-depreciation, interest, and tax (PBDIT) margin dropped to 15.5 percent in Q2FY25 from 20.3 percent the previous year.

2) BIOCON gained 8% after it announced that United States Food and Drug Administration (USFDA) has classified Biocon Biologics’ Biocon Park Site in Bengaluru as Voluntary Action Inidicated (VAI). This is related to the combined current good manufacturing practices (cGMP) inspection and Pre-Licensing Inspection (PLI) conducted by the USFDA between July 15 – 26, 2024.

# Technical Overview:

Technically speaking, Nifty faltered on any intraday strength. The rebound looks like 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 23816 mark; aggressive downside targets are at Nifty’s 200 DMA at 23521 mark.

The fear index, India VIX, which gauges the volatility in the Indian stock markets, is consolidating at 14.22 points.

# Underperforming Nifty Sectors:
Nifty Media (-1.30%)
Nifty Metal (-1)
Nifty Pharma (-0.88%)
Nifty FMCG (-0.88%)
Nifty Auto (-1.28%)

# Bulls of the day:
POWERGRID (+4.35%)
TRENT (+2.60%)
HCLTECH (+1.77%)
INFY (+1.59%)
TECHM (+1.41%)

# Bears of the day:
ASIANPAINTS (-8.00%)
BRITANNIA (-5.95%)
APOLLOHOSP (-3.59%)
CIPLA (-2.69%)
ONGC (-2.02%)
(Source NSSEINDIA.com)

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