S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
A 50% month-on-month increase in net long positioning for FIIs in index futures has led to an expansion of rollover basis across the board this month. This has accompanied a 14% increase in market-wide open interest in single stock futures. Hence, sentiment going into December series is quite bullish.
On the other hand, Nov has seen a record inflow of $7.5 bn from FPIs in equities and coincided with 11% return on Nifty and record selling from DIIs worth $5.5 bn. Favourable macro for EM equities driving flows are predicated on a weak dollar, which is among the highest consensus trades and vulnerable to a news-based squeeze as well. In aggregate, while the underlying trend remains strong, there is some risk of a pullback in aggregate, emanating from an ebbing of FPI flows.
November 26, 2020 / 04:24 PM IST
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities:
Two major events, short covering ahead of November 2020 F&O expiry and rebalancing of MSCI portfolios helped the Indian market to recover sharply from lower levels. The Nifty 50 index regained 13000 levels and is exhibiting remarkable strength.
The unusual support from commodities and financials always helps the market to move forward. Technically, for the next two days, 13070 and 13150 levels would be major hurdles for the index. If the Nifty 50 index crosses 13150, it could jump to 13350 levels. However, below 12930, the index would invite worries in the near term.
November 26, 2020 / 04:23 PM IST
Vinod Nair, Head of Research at Geojit Financial services:
Today, the market regained its momentum during the second trading half, on the monthly derivative expiry day, led by bounce in the banking sector. Investors are awaiting the release of Q2 GDP data tomorrow, the market expects contraction on a YoY basis but improvement on a QoQ basis, reflecting recovery in economic activity. The recovery is expected to further rise in Q3, and the market optimism is also high with the news that vaccine will be available in early 2021.
November 26, 2020 / 04:22 PM IST
Ajit Mishra, VP - Research, Religare Broking:
Markets made a smart comeback and posted gains of over a percent. Initially, the bias was on the negative side, in line with the previous session’s fall but the trend reversed in the latter half, thanks to healthy buying in metals, banking and financial pack. Consequently, the Nifty settled near 12,987 levels. The broader markets too ended in a positive range of 0.7-0.9%. Barring oil & gas, all the sectoral indices ended in the green.
This rebound indicates that bulls are in control however the possibility of consolidation is still high and it would be healthy for the markets. In the near term, markets would continue to take cues from their global peers. On the domestic front, India’s GDP data outcome schedule on 27th November will be on the radar. We reiterate our view to focus more on the selection of stocks during this consolidation phase and continue with the “buy on dips” approach.
November 26, 2020 / 04:03 PM IST
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The support of 12800 worked very well and the Nifty bounced swiftly to close above 12900. If we can get past 13050, we will be on our way to hit 13200. As long as 12800 does not break we could utilise all dips to buy into this strong upside rally.
November 26, 2020 / 03:46 PM IST
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee traded muted by afternoon trade Thursday tracking the dollar index muted trades. Profit booking in stocks by traders is supporting the pair USDINR as compared to dollar index which fell. The range of 73.90 - 74.50 can continue due to major update yet to be announced in terms of US stimulus package.
S Ranganathan, Head of Research at LKP Securities:
Indices were powered on expiry day by Metals & BFSI as the broader market too gained ground after positive guidance from Siemens. PSU banks were sought after in afternoon trade as even profit taking got absorbed on sustained buying.
November 26, 2020 / 03:40 PM IST
Ashish Biswas, Head of Technical Research, CapitalVia Global Research:
We witnessed some lackluster movement in the market and an attempt to hold the support level around the Nifty 50 Index level of 12890. Our research suggests, trading above 12890 is positive from a short-term perspective. Sustaining above 12890 levels, we expect the market to gain momentum, leading to an upside projection till 13130-13140 level. We have observed the momentum indicators like RSI, MACD to recover after staying neutral to bearish in recent time.
November 26, 2020 / 03:36 PM IST
Market Close: Benchmark indices rebounded from the previous session sell-off with Nifty ending the November series near 13,000 level.
At close, the Sensex was up 431.64 points or 0.98% at 44,259.74, and the Nifty was up 128.60 points or 1.00% at 12,987. About 1726 shares have advanced, 986 shares declined, and 179 shares are unchanged.
JSW Steel, Tata Steel, Grasim Industries, Hindalco and Shree Cements were among major gainers on the Nifty, while losers were Eicher Motors, BPCL, Maruti Suzuki, ONGC and HDFC Life.
On the sectoral front, metal index added nearly 4 percent and Nifty Bank and Pharma indices gained 1 percent each.