Closing Bell: Nifty ends Nov series above 17,500, Sensex gains 454 pts led by RIL; realty, pharma gain

The Nifty has entered pullback mode from the lower end of a falling channel. The pullback is subdividing into lower degree waves. An intermediate dip on November 24 found support near the hourly lower Bollinger Band. Thereon the index has started the next leg of the pullback.

It is heading towards the junction of the swing high, 40 hour exponential moving average & the hourly upper Bollinger Band, which is near 17600. So that is a key barrier to watch out for. Once that gets taken out then the Nifty will be set to march towards 17800 in the short term. In terms of the Fibonacci retracement, the pullback has so far retraced 38.2% of the previous decline from 18210 to 17216 & can head towards the 61.8% retracement, which is near 17800.

On the flip side, 17350-17300 will act as a near term support zone.

Indian markets opened on mixed note following mixed Asian market cues as investors digest Bank of Korea raising rates along with resurgence of covid cases in Europe.

During the afternoon session market recovered and gained momentum to enter into green terrain. Sentiments were upbeat as Moody’s expects India's economic growth to rebound strongly, pegging GDP growth of 9.3% and 7.9% in fiscal year 2022 (ending on 31 March 2022) and fiscal 2023, respectively. Additional support also came in as Foreign Secretary said that India has set an ambitious target of $400 billion of exports for the year 2021-22.

Domestic benchmark indices erased early losses to climb higher led by heavyweights and positive sentiments across western peers.

However, concerns over rising inflation were visible in the minutes of the recent FOMC meeting signalling higher chances of an aggressive policy tightening.

Pharma, IT and realty stocks attracted buyers while banking and auto stocks moved against the trend on the day of monthly expiry.

On the last day of November F&O series, markets rebounded sharply, largely supported by gains in Reliance Industries. Technically, Nifty has formed a strong bullish candle and at the same time it is consistently taking support between 17400 to 17350 levels.

We are of the view that the intraday support has now shifted to 17450 from 17350 and as long as its trading above 17450 the uptrend wave will persist up to 17600-17700. On the flip side, below 17450, the uptrend would be vulnerable.

The benchmark index gained more than half a percent in Thursday session and recouped yesterday's losses, settling at 17536.25 levels while Bank Nifty closed in red at 37364.75 levels with a marginal loss of 0.2%.

Technically, the Nifty has pulled up with the support of the Lower Bollinger Band formation and closed above 17500 levels. The indicator Stochastic has also reversed from the oversold territory with positive crossover, which indicates bullish strength in the index.

At present, The Nifty has immediate support at 17350 levels, while resistance at 17650 levels. On the other hand, Bank Nifty has support at 37,000/36,650 levels and resistance at 38,000 levels.

Benchmark indices ended on positive note with Nifty closing above 17500 ahead of November F&O expiry. Sensex was up by 454.10 points (+0.78%) closed at 58,798.09, and Nifty was up by 121.20 points (+0.70%) closed at 17536.25.

On the technical front, immediate support and resistance in Nifty 50 are 17,310 and 17,560, respectively. For Bank Nifty support and resistance are 37,160 and 37,810, respectively.

Markets witnessed a rebound and settled with gains of over half a percent on the monthly expiry day. The beginning was subdued amid mixed global cues however strong spurt in the index heavyweight, Reliance, prompted a gradual up move which further strengthened with support from select index majors like Infosys, ITC and Kotak Bank. Finally, Nifty settled around the day’s high to close at 17,536.20 levels.

Markets lack decisiveness at current levels and it may continue for time being. In case of any rebound, Nifty would face resistance around 17,600-17,800 levels while the 17,350-17,150 zone would act as a cushion. Meanwhile, participants should continue with a stock-specific approach and maintain positions on both sides.

While the trajectory of central banks across the globe on interest rates will no doubt remain the key monitorable for equities, Powell's second term will be keenly watched by emerging economies attracting foreign capital.

Today's trade witnessed buying interest in energy, IT, pharma, real estate and a few metal names with Reliance leading the way. The buzz around new listings is quite clearly reflective of ~ Rs 270 bn invested by FPI in the primary markets this month.

Benchmark indices ended on positive note on November 25 with Nifty finishing the F&O series above 17,500 supported by the Reliance Industries and realty and pharma names.

At close, the Sensex was up 454.10 points or 0.78% at 58,795.09, and the Nifty was up 121.30 points or 0.70% at 17,536.30. About 2054 shares have advanced, 1166 shares declined, and 106 shares are unchanged.

Reliance Industries, Divis Labs, Infosys, ITC and Tech Mahindra were among major gainers on the Nifty, while losers were Britannia Industries, IOC, IndusInd Bank, Maruti Suzuki and ICICI Bank.

Among sectors, oil & gas, realty, pharma indices rose 1 percent each, however, some selling was seen in auto and banking names. The BSE midcap index and smallcap index rose 0.5 percent each.

Acuite expects India’s GDP and GVA to grow by 8.5% YoY and 7.5% YoY respectively in Q2FY22 amid some support from a favourable statistical base along with a gradual removal of lockdown restrictions by most states towards the end of the last quarter.

The steady progress in vaccination and the improvement in consumer sentiments have also been supported by the relative resilience of the industrial sector, a gradual rebound in services sector with improved mobility, buoyancy in exports and improved government capital expenditure.

The board of directors at its meeting held today has approved the re-organisation of the JSW Energy’s Green (Renewable) Business and Grey (Thermal) Business.

Accordingly, to facilitate growth and unlock value for the shareholders, the renewable energy business will be housed under ‘JSW Neo Energy Limited’, a wholly owned subsidiary of the company, while the thermal business will continue to be housed in the company.

JSW Energy was quoting at Rs 315.00, up Rs 7.80, or 2.54 percent on the BSE.

Jefferies has maintained buy call on UPL with a target price of Rs 945.

Over FY21-24, research house estimates company to clock sales/profit CAGR of +9%/ +25% and net debt-to-EBITDA for FY22 at 1.7x.

Focus on margin-accretive solutions, robust pricing and new platforms are the key catalysts.

UPL was quoting at Rs 726.50, up Rs 4.80, or 0.67 percent on the BSE.