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Taking Stock | Sensex ends at record closing peak, Nifty nears 18,500 on F&O expiry day

The Nifty Bank index closed above 43,000 after hitting a fresh record high of 43,163.40, intraday.

November 24, 2022 / 04:23 PM IST

The Indian equity market posted strong gains on November 24 -- the expiry day of the monthly F&O contracts -- with the S&P BSE Sensex hitting an all-time high of 62,412.33 at the fag-end of the session.

The broader Nifty50 too hit a fresh 52-week high while the Bank Nifty soared to a fresh record peak during the trade.

The market extended the winning streak for the third consecutive session on the back of positive global cues and buying across the sectors.

At Close, the Sensex was up 762.10 points or 1.24% at 62,272.68, while the Nifty was up 216.80 points or 1.19% at 18,484.10.

Amid firm global cues, the market started on a positive note and extended the gains during the day as investors rejoiced the outcome of Fed minutes stating slower interest rate hikes going ahead.

"Led by broad-based buying, domestic indices witnessed solid gains as investors digested the latest FOMC meeting minutes, which hinted that the rate hike cycle may be slowing down," said Vinod Nair, Head of Research at Geojit Financial Services.

"The optimism was further boosted by falling crude prices and the declining dollar index. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles," Nair added.

Stocks and sectors

Apollo Hospitals, HDFC Life, BPCL, Infosys and Tata Consumer Products were among the top Nifty gainers, while losers included Cipla, Coal India, Kotak Mahindra Bank, Tata Motors and Bajaj Finance.

All the other sectoral indices ended in the green with Nifty Information Technology, PSU Bank and infra indices rising 1-2 percent. Also, the Nifty auto, energy, and FMCG indices were up 0.5 percent each.

The Nifty Bank index closed above 43,000 after hitting a fresh record high of 43,163.40, intraday.

The BSE midcap index rose 0.5 percent and smallcap index was up 0.4 percent.

On the BSE, the Information Technology index added 2 percent while the capital goods, and oil & gas indices were up 1 percent each. The auto, bank, FMCG, and healthcare indices were up 0.5 percent each.

Among individual stocks, a volume spike of more than 100 percent was seen in Vodafone Idea, Infosys and Tata Consumer Products.

A long build-up was seen in Birlasoft, Apollo Hospitals and L&T Infotech, while a short build-up was seen in Vodafone Idea, GNFC and Biocon.

More than 100 stocks touched their 52-week high on the BSE, including Punjab National Bank, Hindustan Aeronautics, NCC, Rashtriya Chemicals & Fertilizers, Rail Vikas Nigam, Texmaco Rail & Engineering, Power Finance Corporation, Jammu & Kashmir Bank, CG Power and Industrial Solutions, Canara Bank and Bank Of India.

Outlook for November 25

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Investors wound up their short positions on the expiry day, triggered by the US Fed minutes indicating a moderate pace of rate hikes going ahead that eventually propelled benchmark indices Sensex & Nifty to new all-time highs.

Other positive catalysts such as the WTI crude oil prices staying sluggish and the falling US Dollar index and yields improved the risk appetite of investors leading to broad-based buying.

Technically, on daily charts, the Nifty has now formed a long bullish candle and is also holding higher high and higher low formation on daily and intraday charts which is broadly positive.

For traders, as long as the index holds the support of 18,400, there are chances it could hit 18,600-18,700 levels. On the other hand, below 18,400 the uptrend would be vulnerable.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty witnessed strong momentum towards the end of the session on November 24. The hourly upper Bollinger, which had become flat in the last session, expanded today along with the price action. Thus the index went on to cross the hurdle of 18,450.

The benchmark index is now eyeing an all-time high of 18,604. This will be the make or break level to be monitored on a closing basis, which will determine further course of action not only from a short-term perspective but also for the medium term. The immediate support zone shifts higher to 18,400-18,380.

Ajit Mishra, VP - Technical Research, Religare Broking

Markets staged a strong up move on the monthly expiry day and gained over a percent. After the gap-up start, the benchmark indices gradually inched higher and gained noticeable momentum in the last half an hour. Consequently, Sensex made a new record high and Nifty also inched closer to that milestone and closed at 18,484 levels.

Markets have reclaimed buoyancy and we expect the tone to continue; however, participants shouldn’t go overboard and continue with selective buying.

The banking and IT packs look firm to us while others are seeing a mixed trend. We reiterate our preference for index majors and quality midcaps and suggest focusing more on overnight risk management.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own, not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Rakesh Patil
first published: Nov 24, 2022 04:06 pm