The Week That Was: Nifty receives fresh drubbing and dips below its 200 DMA.

*The Week That Was @ 7:30 AM – Saturday, November 16th 2024*

November 11th to November 15th 2024.

Nifty receives fresh drubbing and dips below its 200 DMA.

The Big Question: What’s Next?

Nifty (-2.55%, 23533)
Sensex (-2.40%, 77580)

 

# Strictly speaking, Nifty is vulnerable to more downside as bears hunt for more downside targets.

# Nifty was seen struggling in all the 4-trading sessions of the week gone by as the post-election Donald Trump’s victory rally lost steam.

# Anxiety and nervousness also prevailed in the wake of:

1) 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%).

2) Wall Street seen struggling to find another positive catalyst.

3) Federal Reserve Chair Jerome Powell said the central bank is in no rush to cut rates citing the economy’s strength, a solid labor market, and persistent inflationary pressures.

4) Scorching WPI inflation in India.

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

6) Record exodus from the Foreign Institutional Investors. (FIIs have pulled out a record Rs 1.2 lakh crore from Dalal Street since Nifty hit its peak at 26277 mark on September 27th. In the week gone by, FIIs sold to the tune of Rs. 9683 crores).

7) Maharashtra Assembly polls to be held in a single phase on November 20. Jharkhand polls next phase polls on November 20th. (Counting of votes for the two states will take place on November 23).

# Long Story Short: The ongoing pessimism at Dalal Street is such that in the near term going forward there will be absolutely be no place to run and no place to hide and it could look as if the sky was falling.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty
23533 (-2.55%)
Sensex
77580 (-2.40%)
Bank Nifty 50180 (-2.68%)
Nifty Midcap 15048 (-3.89%)
India VIX 14.77 +2.11%

Dow Jones
43445 (-1.24%)
Nasdaq
20394 (-3.42%)
Bovespa
127792 (-0.03%)

Crude Oil 68.40 (-2.83%)
Gold 2568 (-4.26%)
Silver 30.42 (-2.67%)
USD/INR 84.44 +0.06%

# Here are how indices performed in the week gone by:

1) Nifty plunged 2.55% as cautious trading prevailed all-thru the week as anxiety prevailed amidst lofty valuations, relentless FII selling, and concerns over slowing India’s corporate earnings growth.

2) Bank Nifty too received fresh drubbing, down 2.68%.

3) Nifty Private Bank index dropped 2.29% lower while Nifty PSU Bank index plunged 5.15% on weekly basis.

4) In broader markets, the Nifty Mid-cap 100 index tumbled 3.89% while the Nifty Small-cap index fell by 4.58%.

Bullish Sectors:
Nifty IT (+0.81%).

Bearish Sectors:
Nifty Metal (-5.16%)
Nifty FMCG Index (-4.42%)
Nifty PSE Index (-4.42%)
Nifty Auto Index (-3.74%)
Nifty Oil & Gas Index (-3.72%)
Nifty Pharma (-3.51%)
Nifty Energy (-3.51%)
Nifty Infra Index (-3.18%)
Nifty Reality Index (-2.14%)
Nifty Media (-1.85%)

STOCK SPECFIC NEWS:

1) Subscriptions for NTPC Green Energy’s IPO to open next week is eagerly awaited particularly in light of the successful listing of another renewable energy-related IPO, Waaree Energies. The public offering of the NTPC subsidiary is intended to raise Rs 10,000 crore. With no offer-for-sale (OFS) component, the NTPC Green Energy IPO is anticipated to be a completely new share issuance.

2) Swiggy shares ended at ₹431, up around 10% above IPO price in a highly anticipated debut. (The company plans to utilize funds for expansion, technology enhancement, and marketing).

3) Hyundai Motor India, the country’s No.2 carmaker by market share, reported a 16.5% decline in quarterly profit due to lower domestic sales and as Red Sea disruptions hurt exports, its first earnings report since listing. Hyundai, which makes the ‘Creta’ SUV, said its standalone profit dropped to Rs 1,338 crore in the second quarter ended Sept. 30, from Rs 1,602 crore a year earlier.

4) Asian Paints tumbled around 10% 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.

# In the week gone by, notable gainers amongst Nifty 50 were:
INFOSYS +3.41%
TECH MAHINDRA +2.21%
TITAN +2%
HCL TECH +1.47%
WIPRO +0.59%

# And the losers were:
BRITANNIA (-13.5%)
ASIAN PAINTS (-12.65%)
TATA STEEL (-8.6%)
SHRIRAM FINANCE (-8.06%)
NTPC (-7.75%)

 

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