Dear
Trader…
After surging over 1,000 points intraday,The 30-share BSE
benchmark Sensex surged 239 points or 0.31% to settle at 77,578. The broader
NSE Nifty gained 20 points or 0.09% to end at 23,534.
The market capitalisation of all listed companies on BSE
surged by Rs 1.3 lakh crore to Rs 430.4 lakh crore.
Nifty snapped a seven-day losing run on Tuesday, led by gains
in HDFC Bank and Mahindra & Mahindra, with analysts ascribing the rise in
both benchmarks to a short-term relief rally after shares slid into correction
territory recently.
Sectorally, Nifty Auto, Media, Pharma, Realty, and Consumer
Durables indices gained over 1% on Tuesday. In the broader markets, Nifty
Smallcap100 and Nifty Midcap100 also ended nearly 1% higher.
Key factors behind today’s market Positive : –
1)
Maharashtra election hopes – The market is also rife with rumors about the outcome of the
Maharashtra election, voting for which is scheduled for tomorrow. Japanese
brokerage Nomura stated that the race is highly fragmented and competitive, but
the BJP-led coalition appears to have an edge due to recent populist measures.
2)
Buying the dip – Today’s rally in equity markets
comes as investors seize opportunities following recent declines, with the
Nifty index down over 10% from its recent peak. Mid-cap and small-cap indices
have experienced even steeper corrections, around 12% and 11.5%, respectively.Meanwhile,
despite a rise of over 1.4% during the day, the benchmark closed just 0.3%
higher.
3)
Technical view – The
Nifty ended lower yesterday, its seventh straight daily loss. The last time
that happened was in February 2023, which led to a relief rally and
historically looking at the last decade, such down streaks have mostly led to
the market rebounding over the next 5 days.
4)
Global Market – Government bonds and the Japanese
yen rallied on Tuesday as investors flocked to safe-haven assets after
President Vladimir Putin updated Russia’s nuclear doctrine amid escalating
tensions with the United States over Ukraine.
Putin said Russia could consider using nuclear weapons if it
was subject to a conventional missile assault supported by a nuclear power,
after the United States allowed Ukraine to fire American-made long-range
missiles deep into Russia.
European shares extended losses, sending the region-wide STOXX
600 index down 1% to a more than three-month low. A gauge of euro zone equity
volatility spiked more than three points to a two-week high. U.S. stock futures
fell, with those for the S&P 500 down 0.5%.
5)
China ends export tax rebates for key commodities – China has announced sweeping changes to its export tax
rebates for key commodities, including aluminum, copper and oil products,
effective from December 1. This development has buoyed sentiment in the Indian
commodity market, driving the Nifty Metal index up by around 2% during Monday’s
trade. However, the index faced some profit booking on Tuesday, closing in the
red despite surging 0.86% during intraday trading.
In a statement on November 15, China’s finance
ministry said that from next month, it will end tax relief for exports of
products spanning aluminum, copper and biofuel feedstocks, which previously
benefited from a 13% rebate on export duties.
Nifty futures opened at 23600 points against the previous
close of 23513 and opened at a low 23485 points. Nifty Future closed with an
average movement of 359 points and decline of around 20 points and closed 23524
points…!!
Meanwhile, A strong bounce back due to bottom fishing was short-lived
as caution prevails in the market. Investors tend to use every opportunity to
book profit amidst consistent FII selling and weak Q2 earnings.
Global brokerages CLSA, Citi, and HSBC have recently shifted
their focus from China to India due to contrasting economic conditions. CLSA,
for example, decided to reverse its earlier move from India to China, citing
growing concerns over China’s economy and investor sentiment.
Technically, the
important key resistances are placed in Nifty future are at 23534 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 23606 – 23676 levels. Immediate support is placed at 23373 –
23303 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
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