Trade Setup For Nov. 22: Nifty 50 Sentiment Weak With Support At 23,200
The Nifty 50 dropped to 23,349.90 as global tensions and domestic pressures weighed on markets, with analysts pointing to 23,200 as critical support for stability.
In the short term, Nifty 50 sentiment remains weak, with support placed at 23,200, according to Rupak De, senior technical analyst at LKP Securities. A fall below this level (23,200) could trigger a correction in the market, he said.
“On the upside, resistance is placed at 23,550; a decisive move above this level might induce a rally in the market," he added.
Selling is seen on every rise, but for a trend reversal, Nifty 50 has to clear the hurdle of 23,800, according to Aditya Gaggar, director of Progressive Shares.
“Until then the trend will remain weak, and breaking below today's low will open the doors for the next important support of 23,000,” he said.
According to the hammer candle, if the Bank Nifty sustains above today's high of 50,652, a pullback to the 51,000-51,500 levels is possible, said Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
“On the downside, the 200-day moving average is placed near 49,820, and the low of the hammer candle is placed near 49,787 levels, which will act as support points. If the index manages to respect the 49,787 mark, a relief rebound is likely in the index,” he said.
Market Recap
Benchmark equity indices resumed their declines on Thursday to record their lowest closing in more than five months as sentiment around the globe was weakened due to tensions in Russia-Ukraine and as investors assessed Nvidia's quarterly results.
The Nifty 50 ended 168.60 points, or 0.72%, down at 23,349.90, and the Sensex closed 422.59 points, or 0.54%, down at 77,155.79.
FII/ DII Activity
Overseas investors remained net sellers of Indian equities for the 37th consecutive session on Thursday, while domestic institutional investors stayed net buyers.
Foreign portfolio investors net sold stocks worth Rs 5,320.68 crore, and domestic institutional investors were net buyers of shares worth Rs 4,200.16 crore.
F&O Cues
Nifty November futures down by 0.78% to 23,350 at a premium 0.95 points.
Nifty November futures open interest down by 2.29%.
Nifty Options November 28 Expiry: Maximum call open interest at 24,000 and maximum put open interest at 21,700.
Securities in ban period: Aarti Industries, Aditya Birla Fashion Retail, Adani Enterprises, GNFC, Granules, Hindustan Copper, IGL, National Aluminum.
Major Stocks In News
Afcons Infrastructure: The company has received a letter of acceptance for Rs 1,274 crore from Uttarakhand Project Development and Construction Corp. for civil works.
Tata Power Co.: The company has signed an MoU with the Asian Development Bank for US $4.25 billion to finance key clean energy power projects.
Raymond: The BSE and NSE have issued a ‘no objection’ letter for the demerger between Raymond and Raymond Realty.
Global Cues
Stocks in Asia advanced in the last session of the week as investors took positive overnight cues from Wall Street with Trump Trades overshadowing Nvidia Inc.'s outlook concerns and geopolitical tensions.
Equity benchmarks in Australia and South Korea led the gains during the session opening. The Nikkei was 189 points, or 0.49%, lower at 38,190, while the S&P ASX 200 was up 64 points, or 0.77%, at 8,387 as of 5:40 a.m.
Stocks in the US also got a small boost after jobless claims came in lower than expected. The jobless claims stood at 2.13 lakh in the week ending on Nov. 16 against the estimated 2.20 lakh.
Wall Street ended the Thursday session with gains, extending the post-election run. The S&P 500 index and tech-heavy Nasdaq Composite rose 0.53% and 0.03%, respectively. The Dow Jones Industrial Average advanced 1.06%.
Meanwhile, Bitcoin continued to touch a new record after a brief pause and was edging closer to the key $100,000.
Crude oil prices saw a sharp gain on following Russia's counterattack and Putin's warning to the US. Crude prices headed for the biggest weekly gain since early October with the Brent crude trading 1.95% higher at $74.23 a barrel as of 6:00 a.m. IST, and the West Texas Intermediate up 0.01% at $70.11.
Key Levels
US Dollar Index at 106.97
US 10-year bond yield at 4.41%.
Brent crude up 1.95% at $74.23 per barrel.
Bitcoin was up 0.25% at $98,335.06
Gold spot was up 0.11% at $2,672.65
Money Market
The Indian rupee closed at a record low against the US dollar on Thursday.
The local currency closed nine paise higher at Rs 84.50, according to Bloomberg data, as the Reserve Bank of India continued intervention. It had closed at Rs 84.41 on Tuesday.
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