Nifty closes above 18,600 for the first time, next hurdle 18,700

The Nifty hit another high to close above 18,600 for the first time on November 29, extending the uptrend to the sixth consecutive session supported by positive global cues and buying in FMCG, metal and pharma stocks.

After opening flat at 18,552, which was also the day's low, the index traded higher for the rest of the day. It hit a new high of 18,678 and closed 55 points higher than the previous day at 18,618. The index has formed a bullish candle on the daily charts, making higher highs for the fifth straight session.

Momentum indicators the Relative Strength Index (RSI) trading above 60 and Moving Average Convergence and Divergence were trending upward on the daily and weekly charts, with MACD giving a positive crossover on the daily frame.

"The market is consistently holding higher high and higher low formation which is broadly positive. Hence the support has now shifted to 18,550 from 18,450," Shrikant Chouhan, Head of Equity Research ( Retail) at Kotak Securities said.
As long as the index trades above 18,550, the uptrend will continue. The market can move to 18,750-18,800, the expert said.

The broader market, however, saw profit booking, with the Nifty midcap 50, midcap 100 and smallcap 100 indices declining half a percent each. On the options front, the maximum Call open interest was at 19,000 strike followed by 20,000 strike, with Call writing at 18,800 strike then 18,700 strike. The maximum Put open interest was seen at 18,000 strike followed by 17,000 strike, with Put writing at 18,600 strike then 18,500 strike.

The data indicates that in near term, the Nifty may trade in range of 18,400 to 18,800. India VIX was up by 0.36 percent to 13.62 levels, but overall it has been cooling off for the last nine weeks and supporting the bulls.

Stock Market Today

5 factors that will keep traders busy

After taking a breather in the previous week, the market resumed its uptrend and ended the week at a record closing high with a 1 percent gain on November 25, following an up-move in global counterparts amid rising hope that the Federal Reserve may slow down the pace of rate hikes in the upcoming policy meetings. The declining oil prices, buying by FIIs, and falling US bond yields, too, lifted the sentiment.

The BSE Sensex rallied more than 600 points to 62,294 and the Nifty50 jumped over 200 points to 18,513, while the broader markets were also in action after recent consolidation, with the Nifty Midcap 100 and Smallcap 100 indices gaining more than 2 percent each.

Auto, banks, technology, infrastructure, and oil and gas stocks supported the market, whereas power and realty stocks were under pressure.

In the coming week, too, the momentum along with consolidation is expected to sustain, with the Nifty likely hitting its intraday record high of 18,604, with focus on monthly auto sales numbers and second quarter GDP data on the domestic front, and global cues, experts said. The Bank Nifty as well as the BSE Sensex reclaimed their previous tops.

"Going ahead, the lack of strong fundamental triggers will limit the upside, keeping the market volatile in the short term. The Fed Chair's speech, scheduled for the next week, and the release of other significant macroeconomic data will influence the market's future trajectory," Vinod Nair, Head of Research at Geojit Financial services, said.

1) Quarterly GDP Numbers
The quarterly economic growth rate scheduled to be released on coming Wednesday is the key factor to watch out for next week. Most experts expect the economy to grow more than 6 percent in the September FY23 ended quarter (Q2CY22), lower compared to a growth rate of 13.5 percent recorded in the previous quarter (on a low base due to Covid-led lockdown in Q1FY22), supported by pent-up demand and economic activity normalization.

2) November Auto Sales
Monthly auto sales numbers scheduled to be released in the latter part of next week will also be watched. Commercial vehicle demand momentum is expected to continue in November, while the passenger vehicle sales are likely to be supported by improving semiconductor supply, experts said, but the sustainability of demand for two-wheeler post-festive season is a key to watch.

3) Oil Prices
The correction in oil prices was one of the reasons for strengthening market sentiment last week as it raises hope for ease in inflation and fiscal deficit concerns along with improving margin pressure for corporates. Also, the RBI may heave a sigh of relief as the rate hike pace may be slowed down, experts said.

4) Global Economic Data Points
Investors will closely watch the second estimates for the third quarter (CY22) US GDP, US unemployment rate for November, and monthly manufacturing PMI data due next week.

5) FII Flow
Healthy buying by foreign investors in November seems to have raised the confidence of the market. Experts largely feel the flow is expected to continue in the coming weeks with the fall in the US dollar index, and bond yields and given the India is the fastest-growing economy in the world.

Bank Nifty Price, Nifty Stocks, Nifty Option, Bank Nifty Option Price, Options Stock, Equity Sensex

Market extends rally in fourth week on cooling US inflation, FII buying, strong rupee

The market ended higher for the fourth consecutive week and rose more than 1 percent in the week ended November 11 on the back of a strong comeback by global markets after lower-than-expected US inflation data, continued FII support, rising rupee and robust earnings from India Inc.

For the week, BSE Sensex gained 844.68 points or 1.38 percent to end at 61,795.04, while the Nifty50 rose 232.55 points or 1.28 percent to close at 18,349.7 levels. The BSE Large-cap Index rose 1 percent led by Zomato, FSN E-Commerce Ventures (Nykaa), Bank of Baroda, Britannia Industries, HDFC Bank and Punjab National Bank.

BSE Mid-cap Index slipped 0.7 percent dragged by Ramco Cements, Aurobindo Pharma, Tube Investments of India, Deepak Nitrite, and Jubilant FoodWorks. However, Union Bank of India, Bank of India, Samvardhana Motherson International, Supreme Industries, and Endurance Technologies rose 7-21 percent.

The BSE Small-cap index shed 0.4 percent. TCPL Packaging, Honda India Power Products, Kamdhenu HLV, Future Retail, Sanghvi Movers, Neuland Laboratories, SMS Pharmaceuticals, FIEM Industries, Lumax Industries, MPS, Indraprastha Medical Corporation, Hindustan Foods, Timex Group India, KPI Green Energy, Swan Energy, Dhunseri Ventures and Ajmera Realty rising 15-23 percent. However, Cressanda Solution, TeamLease Services, NR Agarwal Industries, DMCC Speciality Chemicals, Campus Activewear, Renaissance Global, Everest Industries, NRB Bearings, and Fairchem Organics lost 15-18 percent.

On BSE Sensex, HDFC Bank added the most in terms of market cap followed by Tata Consultancy Services, Housing Development Finance Corporation, and Reliance Industries. On the other hand, Bajaj Finserv, Asian Paints, and Titan Company lost most of their market cap.

Equity Benchmark, Bank Nifty Option, Share Market Today, Share Market Today, Share Market Today

Nifty on course to surpass the year's high, 18,000 holds the key, say experts

The Nifty ended 133 points higher on November 1 at 18,145, its best closing since January, on buying in technology, metal, pharma and FMCG names. The index formed a Doji pattern on the daily charts, indicating indecisiveness among bulls and bears about the market trend.

The index closed well above the psychologically vital 18,000 mark, which can act as a support for the time, and can pave to 18,350, the high of 2022, and then a record high of 18,604, experts said. "The area of 18,000-18,100 will now act as a support zone as per the principle of role reversal. Till the time the Nifty stays above these levels, it can stretch to 18,300-18,400," Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said.But if the index slips below 18,000, it will be a sign of exhaustion, he said.

The broader markets also traded higher, with the Nifty midcap 100 index rising 0.87 percent and the smallcap 100 index up 0.22 percent as the breadth remained muted. About 1,069 shares gained against 900 declining shares on the NSE. Volatility was slightly high during the day. India VIX, which indicates volatility expected over the next 30 days, climbed 2.07 percent to 16.13 levels.

On the options front, we have seen maximum Call open interest at 18,500 strike followed by 19,000 strike while the maximum Put open interest was seen at 17,000 strike followed by 17,500 strike. Marginal Call writing was seen at 18,200 strike then 18,300 strike, while marginal Put writing was at 18,100 strike then 18,000 strike.

The data indicates that in the immediate term, the Nifty can trade in the 17,900-18,350 range.

Stock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market TodayStock Market Today