Trade Setup For Nov. 27: Nifty 50 Seen In Bearish Belt Hold Pattern, Faces Resistance At 24,350
Nifty 50 faces crucial support at 24,000 level, according to analysts. Investors are advised to accumulate quality stocks during dips, they said.
The NSE Nifty 50 has formed a bearish candlestick pattern which indicates a temporary pause in the positive momentum, according to analysts.
In the short-term, 24,350 is expected to act as "strong resistance" for the benchmark index, according to Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
The benchmark index's immediate support lies near the 21-day exponential moving average at 24,070, followed by psychological support at 24,000, Yedve said.
"Open interest analysis reveals key levels in the derivatives market, with the highest call OI at the 24,500 and 24,700 strike prices, signaling resistance zones (for the Nifty)," said Mandar Bhojane, research analyst at Choice Broking Ltd. Meanwhile, the highest put OI at the 24,000 and 23,500 strikes points to strong support levels, he added.
Investors are advised to accumulate quality stocks during dips, particularly in these lower support zones, while adhering to disciplined risk management strategies, Bhojane said.
On the other hand, the Bank Nifty witnessed profit booking on Tuesday, and settled on a flat note at 52,192 levels. Technically, the index failed to cross the major barrier of 52,500-52,580 and formed a bearish belt hold pattern, indicating weakness, Yedve said.
"As per this pattern, as long as index maintains below 52,580 weakness will continue. Thus, traders are advised to book profits and wait for a fresh breakout above 52,580," he added.
FII/DII Action
Overseas investors remained net buyers of Indian equities for the second consecutive day on Tuesday, while domestic institutional investors remained net sellers for the second straight day.
Foreign portfolio investors net bought stocks worth Rs 1,157.7 crore, according to provisional data shared by the NSE. The DIIs were net sellers of shares worth Rs 1,910.9 crore.
F&O Cues
The Nifty November futures were down by 0.28% to 24,205 at a premium of 11 points, with the open interest down by 14.25%.
The open interest distribution for the Nifty 50 Nov. 28 expiry series indicated most activity at 22,350 call strikes, with the 21,950 put strikes having maximum open interest.
Market Recap
The Nifty and the BSE Sensex failed to keep up the recovery in a choppy session on Tuesday as the benchmark indices reversed a two–session rally, dragged down by Mahindra & Mahindra Ltd. and Larsen & Toubro Ltd.
The Nifty ended 27.4 points or 0.11% down at 24,194.50, and the Sensex closed 105.79 points or 0.13% lower at 80,004.06.
During the session, the Nifty 50 fell as much as 0.50% to 24,125.40, while the Sensex declined 0.46% to 79,798.67.
Major Stocks In News
Wipro: The company extended partnership with automotive solutions company Marelli for additional four years and received $100 million deal.
Kotak Mahindra Bank: The Competition Commission of India approved the acquisition of personal loans business of Standard Chartered Bank, India Branch.
Ola Electric Mobility: The company launched two new electric bikes: Gig and S1 Z with price starting at Rs 39,999.
Olectra Greentech: The company gives REC guarantee for Rs 2,500 crore loan to promoter's arm.
Aster DM Healthcare: The company entered into an agreement with the key promoters and minority shareholders of its arm Prerana Hospital (Aster Aadhar), for acquiring additional equity shares representing 13% stake of Prerana Hospital.
Exide Industries: The company made an additional investment of Rs 100 crore in arm Exide Energy. The total investment in arm now stands at Rs 3,052 crore.
Sky Gold: The company approved bonus issue in the proportion of 9:1.
Global Cues
Stocks in the Asia-Pacific region traded mixed on Wednesday after Israel reached a cease-fire deal with the Lebanese militant group Hezbollah while Wall Street brushed aside Trump's tariff threats. Oil prices remained steady.
Equity benchmarks in Japan fell while South Korea's remained flat during the session's opening. The Nikkei was 169 points, or 0.04%, lower at 38,310, while the S&P ASX 200 was down 42 points, or 0.51%, at 8,402 as of 5:42 a.m.
After weeks of talks mediated by the US, Israel reached a deal for a 60-day cease-fire with the militant group Hezbollah.
Wall Street shrugged off any potential backfire amid abating geopolitical risks with the key gauges touching a new record. The S&P 500 index and tech-heavy Nasdaq Composite rose 0.57% and 0.63%, respectively. The Dow Jones Industrial Average advanced 0.28%.
Crude oil prices remained steady easing geopolitical risk was counterbalanced by anticipated drop in US stockpiles amid signs of further delay in restoring output by the OPEC+.
The Brent crude was trading 0.27% lower at $72.81 a barrel as of 6:00 a.m. IST, and the West Texas Intermediate was up 0.13% at $68.86.
Key Levels
US Dollar Index at 107.01
US 10-year bond yield at 4.30%.
Brent crude down 0.27% at $72.81 per barrel.
Bitcoin was up 0.43% at $92,041.31
Gold spot was down 0.11% at $2,630.25
Money Market
The Indian rupee closed weak against the US dollar on Tuesday, with analysts seeing banks turning cautious over their dealings with the domestic unit.
The local currency slipped by six paise to close at 84.34, after opening flat against the greenback earlier in the day.
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