Nifty: The short-term technical picture for the Nifty remains bullish, with resistance at 20500–20751 and support at 20089–19909, according to Prashanth Tapse, Senior VP (Research), Mehta Equities.
In the shortened week, the Indian equity market recorded strong gains and continued its winning streak for the fifth week in a row. This helped the Nifty50 test a new record high of 20,291.55 in the week’s final session, driven by positive domestic and global data prints and extended support from FIIs amid waning fears of future interest rate hikes by the Fed and ECB.
The Nifty50 increased by 5.5 percent and the BSE Sensex by almost 5 percent in November.
With the BSE Mid-cap, Large-cap, and BSE Small-cap indices contributing 3%, 2.6 percent, and 2% of the total return, respectively, the wider indices performed better than the main indices.
This week, the market reached all-time highs as it decisively broke through the major resistance level and closed well above 20,000. With inflation on the decline and expectations that the ECB has completed its cycle of rate hikes, global markets saw a bullish trend. Strong Q2FY24 GDP numbers and a noteworthy increase in manufacturing activity gave the Indian economy a big boost and improved the growth outlook considerably. According to Vinod Nair, Head of Research at Geojit Financial Services, the IPO market maintained its vibrancy, highlighted by Tata Technology’s monumental listing, fostering increased investor confidence in riskier assets.
“The overall market performed better, and there were no signs of exhaustion or resiliency in the mid and small caps. Investors are still confident that H2FY24 growth will be driven by increased government spending and higher consumption, which will be fueled by lower inflation. OPEC+’s supply cut did not stop the downward trend in oil prices. Positive contributions also came from the much-anticipated exit polls, which improved investor perceptions of the current union government.”
Investor focus will primarily be on the release of service PMI data from China, India, and the United States in the coming week. Expect the status quo at the RBI policy meeting next week, but the growth outlook may be positively adjusted. The November slow resurgence of FIIs indicates that the good trend is expected to continue,” he continued.
Nifty reaches new high; 38 small-cap stocks gain up to 33%
Every sectoral index concluded on a positive note, witnessing notable gains. The BSE Oil & Gas and Power indices recorded an impressive surge of 5.7 percent each, while the BSE Capital Goods index marked a substantial uptick of 3.6 percent. Additionally, the BSE Metal index showed a commendable increase of 3 percent.
Throughout the week, the market experienced a resurgence in Foreign Institutional Investor (FII) activity, with a substantial investment of Rs 10,593.19 crore. Concurrently, Domestic Institutional Investors (DIIs) also displayed robust buying behavior, acquiring equities amounting to Rs 4,353.55 crore.
The BSE Small-cap index marked a 2 percent ascent, propelled by noteworthy performances from various stocks. Navkar Corporation, Datamatics Global Services, Tanfac Industries, Kesoram Industries, 63 Moons Technologies, Aster DM Healthcare, Sutlej Textiles and Industries, Marksans Pharma, Shalimar Paints, NBCC (India), Genesys International Corporation, and India Cements exhibited substantial gains, ranging from 15 to 32 percent.
Conversely, Aether Industries, TVS Srichakra, RattanIndia Power, Vikas WSP, Texmaco Rail and Engineering, DB Corp, CarTrade Tech, Jaiprakash Associates, Jaiprakash Power Ventures, SML Isuzu, Thomas Cook (India), PDS, Honda India Power Products, The Bombay Dyeing, Himatsingka Seide, and Dilip Buildcon witnessed a decline in the range of 7-10 percent.
