Dear
Trader…
Following the surge, the combined market capitalization of
all listed stocks on BSE rose by Rs 7.2 lakh crore to Rs 432.57 lakh crore.
Reliance Industries, Infosys, ICICI Bank, TCS, ITC, L&T,
and SBI collectively added over 1,150 points to the Sensex overall rally, with
Bharti Airtel, HCL Tech, M&M, and Bajaj Finance further boosting the upward
momentum.
Meanwhile, buying activity was seen across all major sectors.
IT companies, which earn a significant share of their revenue from the U.S.,
climbed 3.3% on the back of strong labour market data in the U.S.
Nifty PSU Bank index surged 3% after a 2.7% slide on
Thursday. The highest weighted financials and banks surged 1.5% each.
Here are top factors behind today’s rally:
1)
Rally in IT stocks – The Nifty IT index jumped 3.3%, driven by strong
US labour market data. Initial jobless claims in the US dropped by 6,000 to a
seasonally adjusted 2,13,000 for the week ending November 16, the lowest in
seven months. This indicates that US job growth likely rebounded in November
following a slowdown in October due to hurricanes and strikes.
2)
Rebound in Adani stocks – Adani
Group stocks bounced back from early losses, closing up to 4% higher on Friday.
Ambuja Cement led the rally with a 4% gain, followed by ACC, which rose nearly
3.3%.
Flagship Adani Enterprises saw a 2% increase, while other
stocks, including Adani Ports and Adani Total Gas, gained between 1% and 2%.
However, Adani Energy Solutions, Adani Green Energy, and Adani Power ended in
the red after midday trade gains.
Earlier in the session, Adani Group stocks had extended
losses for a second consecutive day, falling as much as 11% due to US charges
and a setback in Kenya.
3)
Buying the dip – Today’s rally in the equity
markets also comes as investors capitalize on recent declines, with the Nifty
index down over 11% from its recent peak. The mid-cap and small-cap indices
have also corrected by around 12% and 9%, respectively.
As market sentiment shifts, buyers are seizing the
opportunity presented by lower valuations, reflecting confidence in the
long-term recovery potential of these segments.
4)
Global Markets – Indian equity indices surged,
following the upward movement in global markets. Japan’s Nikkei share average
ended higher on Friday after two consecutive sessions of losses, with
chip-related stocks, including Nvidia, leading the rally. Korea’s Kospi closed
0.84% higher, while Australia’s S&P ASX 200 rose 0.85%.
Overnight, Wall Street’s major indices also closed higher,
with the blue-chip Dow and the S&P 500 reaching one-week highs.
MSCI’s world stock index was set for a 1.1% weekly rise,
while Britain’s exporter-heavy FTSE 100 saw a 0.7% daily boost, driven by the
weakening of the pound against the dollar.
5)
Rise in PSU bank stocks – Public
sector bank stocks also contributed to today’s rally. Heavyweights like State
Bank of India, Bank of Baroda, and Punjab National Bank led the recovery as
investor confidence returned following Thursday’s sell-off.The Nifty PSU Bank
Index rose 3%, reaching 6,508.2, reversing the losses from the previous
session.
6)
Maharashtra election hopes –
The market is abuzz with expectations ahead of
tomorrow’s Maharashtra Assembly election results, as most exit polls predict a
comfortable majority for the BJP-led Mahayuti alliance, suggesting that it is
likely to retain power.
Maharashtra, the second-largest state in terms of Lok Sabha
representation and the third-largest in Vidhan Sabha strength, is a key
political battleground and an economic hub. The election outcome could
significantly influence policy decisions and investor sentiment, particularly
in sectors closely tied to government actions.
Nifty futures opened at 23424 points against the previous
close of 23348 and opened at a low 23381 points. Nifty Future closed with an
average movement of 578 points and decline of around 537 points and closed 23886
points…!!
Meanwhile, The market witnessed a significant broad based rally, from
the oversold territory, predominantly led by large-cap stocks, as their
valuations appeared appealing with expectations of improvement in corporate
earnings in the second half of the fiscal year.
Positive momentum was also observed in global markets, due to
modest decline in Japan’s October inflation and 39 trillion yen stimulus
package. Moderation in global & domestic political drama provided a relief
to the domestic market.
Technically, the
important key resistances are placed in Nifty future are at 23886 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 24008 – 24108 levels. Immediate support is placed at 23787 –
23606 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
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
