Closing Bell: Nifty above 23,900, Sensex gains 1,961 pts; IT, realty, PSU Bank rally

Indian benchmark indices rose 2.5 percent on November 22 with Nifty closing above 23,900. At close, the Sensex was up 1,961.32 points or 2.54 percent at 79,117.11, and the Nifty was up 557.40 points or 2.39 percent at 23,907.30.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Nifty opened on a bullish tone, experienced strong buying interest throughout the day, and closed on a positive note near 23,907 levels. The volatility index India Vix rose by 0.67% to 16.10, indicating an increase in market volatility.

Technically, index on a daily scale has formed a large green candle, indicating strength. Furthermore, the index crossed the 23,800 barrier and closed above it, confirming strength. However, the index is still placed below 21-Days exponential moving average (DEMA), which is placed near 24,040. Thus, 24,040-24,050 will act as immediate resistance for the index, while 23,800 will act as immediate support for the index. If index manages to sustain above 24,050 then rally could extend towards 24,200-24,300 levels. Thus, in the short-term, buy on dips approach should be adopted.

Bank Nifty opened on a positive note, witnessed strong buying interest, and settled the day on a positive note at 51,135 levels. Technically, the index on a daily scale sustained above hammer candle high of 50,652, and formed a big green candle. Moreover, the index has broken the resistance of 50,984 and sustained above it. If index managed to hold 50,980, then rally could extend towards 51,500-52,000 levels. Thus, in the short-term, buy on dips approach should be utilized.

Markets rebounded strongly this week, gaining over 2% after a recent decline. While Nifty saw early volatility, strength in banking and IT stocks propelled the index higher, later supported by other sectors. IT and realty outperformed, rising over 3% each, while broader indices participated but lagged the benchmark.

State election results, on Monday could influence the market’s direction, especially in the early hours. Nifty is nearing its immediate resistance at the 20 DEMA around 24,050. A decisive breakout could push it toward 24,350, but failure may trigger profit booking. Traders should maintain a stock-specific approach, focusing on IT and banking, which exhibit stronger momentum, while being selective in other sectors.

#1 Market snaps 2-week losing streak, regains half of last week’s losses

#2 All sectoral indices except Media & Energy give positive returns

#3 All frontline indices (Sensex, Nifty, Midcap & Nifty Bank) up nearly 2 percent

QIB – 3.32 times

NII - 0.80 times

Retail – 3.29 times

Employee Reserved - 0.76 times

Shareholder Portion - 1.52

Overall – 2.38 times

Markets witnessed a major relief rally on across-the-board buying as benchmark indices surged over 2% ahead of the poll results in two states on Saturday. The exit polls hinting at BJP winning in both the states seemed to have boosted investors' sentiment in a big way and shrugged off the alleged bribery charges against the Adani group. Also, many of the stocks are now looking relatively attractive, especially after the relentless selloff over past few weeks due to dismal Q2 earnings and unabated FII fund outflows, and hence the reversal of trend.

QIB – 1.78 times

NII - 2.20 times

Retail – 1.50 times

Employee Reserved - 2.88 times

Overall – 1.74 times

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.

Indian rupee ended 5 paise higher at 84.45 per dollar on Friday versus Thursday's close of 84.50.

Indian benchmark indices rose 2.5 percent on November 22 with Nifty closing above 23,900.

At close, the Sensex was up 1,961.32 points or 2.54 percent at 79,117.11, and the Nifty was up 557.40 points or 2.39 percent at 23,907.30. About 2340 shares advanced, 1418 shares declined, and 118 shares unchanged.

Biggest Nifty gainers were State Bank of India, TCS, ITC, UltraTech Cement, Titan Company, however, Bajaj Auto was the only loser.

BSE Midcap index added 1.3 percent and Smallcap index rose nearly 1 percent.

All the sectoral indices ended in the green with PSU Bank, IT, FMCG, energy, realty up 2-3 percent.

National Fertilizers  shall be making forays in nano urea by launching its latest and ultra effective variant using cutting edge nano technology at its Nangal plant. The company shall be manufacturing 1.5 lakh bottles of 500 ml per day at its nangaI plant with the new variant.

QIB – 3.25 times

NII - 0.67 times

Retail – 3.15 times

Employee Reserved - 0.73 times

Shareholder Portion - 1.43

Overall – 2.28 times

The company has been named the ‘Official Digital Partner’ of MoneyGram Haas F1 Team, announcing a multi-year, technology-driven partnership. It will collaborate closely with the MoneyGram Haas F1 Team to develop solutions for enhancing the team's performance on the track and driving operational efficiency off the track.

NLC India has emerged as highest quoted (H1) bidder for New Patrapara South Coal Mine in Angul District of Odisha subsequent to the commercial coal block E-auction held on 21.11.2024 by Ministry of Coal.

As the war between Ukraine and Russia intensified the oil prices made a sharp recovery to rally 4% through the week. West Texas Intermediate crude futures firmed up 0.3%, to $70.30 per barrel in the Mid European trading session following a 2% rally on Thursday. The conflict renewed after UK and US allowed Ukraine to strike Russia with their weapons, meanwhile Russia had fired ICBM and warned of global conflict. The economic data remains subdued from Eurozone China and US to keep demand low while market is well supplied with rising production from Non-OPEC+ nations.

Outlook: If not for geo-political risk we expect crude oil prices to average under $70-$67 in coming days, while escalation of war could send prices to trade in between $72-$75 in short term. For the day we advise buying the correction as WTI may test the resistance of $72.

Nymex WTI Jan: Support $69, Resistance: $71.5

MCX Crude Dec: Support Rs 5850, Resistance Rs 6100

The company has executed a definitive agreement with One Place Commercials for the purchase of commercial office space in Lower Parel, Mumbai, for Rs 486 crore.

The USDINR pair, after hitting a fresh record high of Rs 84.52 today, is trading steady at Rs 84.50 currently.

The Indian PMIs data released today were mixed as the manufacturing PMI eased a bit in November to 57.30 from 57.50 in October, whereas the services PMI improved to 59.20 in November from 58.50 in October.

Geopolitical tensions, portfolio outflows, and rallying US Dollar Index are likely to keep the domestic currency under pressure, though the RBI's intervention is leading to a gradual and orderly decline. The India's central bank defends its forex market policy.

The pair is expected to rise to Rs 85 eventually. Support is at Rs 84.25.

Adani Group's green energy, transmission, and power generation units have loans backed by strong assets, alleviating major concerns for India’s state-run lenders, according to Bernstein.

The combined gross debt of Adani Green, Adani Energy, and Adani Power stands at Rs1.2 trillion, with Rs400 billion sourced from financial institutions, likely including Power Finance Corp, REC Ltd., and IREDA. Despite the debt levels, the financial performance of these entities remains robust, with a combined EBITDA of Rs363 billion over the past 12 months.

Adani Power’s Bangladesh plant, which owes Rs71 billion to financial institutions, is facing payment delays from the new government in Bangladesh. However, the plant’s strategic location in India’s coal belt and the potential to connect to a new grid for domestic power sales provide a safety net, with the company remaining profitable at the entity level.

Bitcoin touched a fresh record high on Friday, with its sights set firmly on the $100,000 barrier, in a stellar rally for the cryptocurrency sparked by expectations of a more friendly regulatory environment under a Donald Trump administration.

It has more than doubled in value this year and is up about 45% in the two weeks since Trump's sweeping election victory, which has also seen a slew of pro-crypto lawmakers being elected to Congress.

#1 Q2 bookings disappoint on launches

#2 Margin disappoint on contractual business to catch up, launch pipeline robust

#3 Post its recent rights issue & improved OCF performance, business is poised for strong growth

QIB – 1.21 times

NII - 0.50 times

Retail – 2.91 times

Employee Reserved - 0.59 times

Shareholder Portion - 1.27

Overall – 1.29 times

Gold was headed for its largest weekly gain in nearly eight months on Friday and the euro hovered at a 13-month low as Russia lowered its threshold for using nuclear weapons and fired a hypersonic ballistic missile at Ukraine.

The company has received a 'No Observation Letter' from the NSE & BSE for the scheme of arrangement between the company and Raymond Realty.

#1 Asset quality is holding-up and recoveries will also aid earnings in H2

#2 Policy rate cuts may be gradual and bank’s higher share of MCLR loans will insulate NIM

#3 Bank doesn’t plan to raise capital or monetise/ list stake in subsidiaries

QIB – 0.75 times

NII - 0.43 times

Retail – 2.75 times

Employee Reserved - 0.53 times

Shareholder Portion - 1.18

Overall – 1.04 times

The company board approved to issue of bonus equity shares in the ratio of 2:1 i.e. 2 new fully paid equity shares of Re 1 each for every 1  existing equity share of ͅRe 1 each held as on record date by the shareholder, subject to the approval of shareholders of the company through Postal Ballot.

Company has received notices issued by both exchanges dated November 21, 2024 levying fine of Rs 5,42,800 (all inclusive) for non- compliance with Regulation 17(1)(b) of SEBI (LODR), 2015 i.e., at least half of the Board of company does not comprise of Independent Directors.

QIB – 0.75 times

NII - 0.39 times

Retail – 2.64 times

Employee Reserved - 0.50 times

Shareholder Portion - 1.13

Overall – 1 times

The Sensex was up 622.02 points or 0.81 percent at 77,777.81, and the Nifty was up 190.60 points or 0.82 percent at 23,540.50. About 2052 shares advanced, 1126 shares declined, and 107 shares unchanged.

#1Refining margin is starting to recover after two tough quarters

#2 Permanent refinery capacity shutdowns have also risen

#3 Stock is pricing in challenges across key verticals post USD 50 billion market cap reduction in Q4 but not improvement

#4 FCF engine should pick up pace as nearly 0.6 mbpd of refining capacity shuts in 2025 globally

#5 Net capacity adds should be half of demand growth

#6 New energy is seeing improved outlook as China controls new solar panel capacity production

The company has signed a Memorandum of Understanding (MoU) with the Asian Development Bank for USD 4.25 billion to finance key clean energy power projects.

The Georgia Department of Labor, USA, has imposed a penalty of USD 3.28 million on the company for the period from Q3CY19 to Q1CY24. The company is in the process of seeking clarifications on the pending tax amounts and the levy of penalties.

Life Insurance Corporation of India (LIC) bought a 2.001% stake in LTIMindtree between March 20 and November 11, 2024, via open market transactions, increasing its shareholding in the company from 5.033% to 7.034%.

Praj Industries is eying opportunities in multiple sectors including sustainable aviation fuel (SAF), biopolymers and the energy transition & climate actions (ETCA) and is expecting to triple its revenues by 2030.

The energy transition & climate actions (ETCA) sector which has a global potential and contains segments like blue and green hydrogen, green ammonia and west to energy solutions is expected to drive the growth. Globally, the energy majors are likely to invest close to INR 25 Lakh Crore in the clean energy sector by 2030, whereas the traditional oil and gas market will continue to attract new investments to the tune of 21 Lakh Crore in the next 10 years' time on the global front, says Pramod Chaudhari.