What Just Happened to the Nifty 50? Market Faces Continued Pressure: Will Nifty Bounce Back or Sink Further?

At the close, the Nifty 50 was at 23,532.70 down by 0.11%

The Nifty 50 opened with a slight red tint today, marking a 0.11% drop, closing below the 23,550 mark. But, what’s really happening beneath the surface? Is this just another blip, or is there something deeper at play?

Earlier this week, Indian benchmark indices saw a slight lift, driven by positive U.S. inflation data, sparking hope for a Federal Reserve rate cut in December. But those early gains were quickly reversed. The Nifty’s downtrend continued for the sixth straight session, extending its correction phase, as it was dragged down by selling in FMCG, PSU Bank, and oil & gas stocks. At the close, the Nifty was down by 26.35 points, settling at 23,532.70.

The market showed brief signs of hope during the first few hours of the day, but once the index approached higher levels, selling pressure emerged, bringing it below 23,500. Still, certain sectors like realty, auto, and media showed resilience, offering a glimmer of optimism amid the volatility.

But the real question remains—where is the market headed next? After all, we saw a sharp drop earlier this week, as the Nifty slid below 23,600. Why? A spike in inflation rattled investors, reducing hopes for a rate cut next month, while weak earnings and foreign outflows kept the pressure on.

What’s driving this market slowdown?

With foreign institutional investors (FIIs) continuing to sell, and inflation concerns weighing heavily on consumer sentiment, the road ahead doesn’t seem smooth. We’ve seen a 10% drop from Nifty’s record high on September 27, confirming that we’re in a correction phase. But could this sell-off lead to something more significant? Or is it just temporary turbulence?

There’s a glimmer of hope—the index is currently testing a crucial support level at the 200-day moving average (23,556). Could this be the point where the Nifty bounces back? Or is this just the calm before the storm?

The volatility isn’t over yet, and as the markets remain closed for Guru Nanak Jayanti on Friday, November 15, traders will be left wondering: Will this market correction deepen, or is there a strategic rebound on the horizon?

Keep your eyes on the next few trading days, because the future of the market is hanging by a thread. With government spending and potential economic data on the horizon, the Nifty’s next move could very well shape the direction for the rest of the year.

What Will Be the Key Factors to Watch?

1. FIIs’ continued outflows—Are they turning away for good? Or is there room for a reversal?
2. Inflation trends—Can the government tame rising prices?
3. Domestic business recovery—Will improving economic data trigger a market rebound?

Stay tuned—because the Nifty’s next move could determine the fate of your portfolio!

Bank Nifty: Up by 0.18%

What a day for Bank Nifty! It started in the red, teetering on the edge of a decline, but managed to flip the script and closed in the green at 50,179.55, up by 0.18%. Could this unexpected rebound signal a deeper recovery, or was it just a fleeting moment in a volatile market?

Meanwhile, BSE Sensex had a different story to tell. Down by 0.14%, the index closed in the red, ending at 77,580.31—a noticeable dip that leaves traders questioning if the global headwinds are starting to catch up with India’s benchmark indices.

In the sectorial front, the media sector saw a surprising surge, with a staggering 2.26% rise, but here’s where it gets juicy: Network18 Media & Investments Ltd. shot up by a jaw-dropping 8.63%, and Tips Music Ltd. followed closely with a solid 5.67% gain. But wait—what’s the catch?

While the media sector celebrates its victories, the FMCG sector was caught in a downward spiral, losing a significant 1.53%. Hindustan Unilever Ltd. couldn’t escape the storm, dropping 2.92%, and Britannia Industries Ltd. saw a decline of 2.47%.

Foreign Institutional Investors (FII/FPI) have been net sellers, with a net outflow of Rs 1,849.87 crore. The total buy value stood at Rs 13,003.06 crore, while their sale value amounted to Rs 14,852.93 crore, signaling a wave of selling pressure in the market.

Domestic Institutional Investors (DII) have been net buyers, showing a net inflow of Rs 2,481.81 crore. The buy value for DIIs was Rs 10,200.35 crore, while their sale value was Rs 7,718.54 crore, indicating strong support from domestic investors.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included AU Bank with a 2.35% increase, Kotak Bank with a 1.23% increase, HDFC Bank with a 0.66% increase, ICICI Bank with a 0.42% increase, and Axis Bank with a 0.07% increase.

On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.72% decline, Federal Bank with a 1.16% decline, Punjab National Bank with a 0.90% decline, Canara Bank with a 0.75% decline, and Bank of Baroda with a 0.64% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 14th November, 2024

The Indian Rupee Hits a Record Low—But Is It Holding Stronger Than You Think? 🌍💸

The Indian Rupee has slipped to a record closing low, but don’t be quick to judge—it’s outperforming many of its regional counterparts. On Thursday, the rupee settled at 84.3950 against the U.S. dollar, a slight drop from 84.3775 in the previous session. While this marks the currency’s weakest close, the rupee has been resilient, largely due to the strategic dollar sales by state-run banks, which have been buffering the currency against a surging greenback and weakness in local stocks.

Despite this, the U.S. dollar has been on a tear. The dollar index surged by 0.4% to 106.92, its highest level in a year, driven by ongoing concerns over inflation, as market players brace for remarks from Federal Reserve Chair Jerome Powell that could hint at the future direction of U.S. monetary policy. In turn, this has hurt emerging market assets, with the rupee closing nearly unchanged week-on-week.

But here’s the twist: While the rupee faced pressure, it has fared better than most other Asian currencies in November. The Thai baht and the offshore Chinese yuan have taken bigger hits, down by 2.7% and 1.5%, respectively. Meanwhile, the Indian currency has only dropped 0.4% on the month, thanks to Reserve Bank of India (RBI) interventions.

So, what’s next for the rupee? Will it continue to hold steady despite the dollar’s dominance, or will the greenback’s strength prove too much? Investors are eagerly awaiting Jerome Powell’s comments for the next clue on where the dollar—and the rupee—might head next.

Stocks Highlights

The stock market has seen some unexpected twists today—Eicher Motors Ltd. powered ahead with a solid 6.59% gain, jumping from Rs 4,883.70 to Rs 4,890.95 per share. But there’s more than just a simple price increase—Eicher Motors has outperformed its own 5-year average ROE, delivering a stellar 22.17% return on equity for the year ending March 31, 2024, far exceeding its historical average of 17.54%. Quarterly performance? A slight 1.24% revenue decline, but this is the lowest drop in the last 3 years. The real kicker? Eicher Motors has delivered a 68.52% return over the past three years, nearly doubling the 34.4% return of the Nifty 100.

But hold your horses—Hindustan Unilever Ltd. is singing a different tune. Its share price took a hit of -2.92%, dipping from Rs 2,389.20 to Rs 2,392.95. And the stock returns? A disappointing 2.49% over 3 years, significantly lagging behind both the Nifty 100’s 34.4% and the Nifty FMCG index, which delivered 46.23% over the same period.

So, what’s going on with these two giants? Why is Eicher Motors accelerating, while Hindustan Unilever seems to be stuck in neutral? The company’s employee and interest expenses are low, with just 1% of operating revenues allocated to interest and 4.86% to employee costs in the year ending March 31, 2024.

Advance Decline Ratio

Today, the advance-decline ratio was 1.07 and the market breadth was positive. The volatility index India Vix increased by 4.27 to settle at 14.78 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1436
Decliners – 1343
52Wk High – 31
52Wk Low – 148
High Band Hitters – 90
Low Band Hitters – 134
200d SMA – 23550
50d SMA – 24895
20d SMA – 24247

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+6.59%), Hero MotoCorp (+2.06%), Grasim (+1.25%), Kotak Bank (+1.23%), and HDFC Life (+1.20%).

The top losers were Hindustan Unilever (-2.92%), BPCL (-2.50%), Britannia (-2.47%), Tata Consumer (-2.35%), and Nestle India (-2.11%).

Top Gainers and Losers Sectors

The top gainer sectors were Media (+2.26%), Realty (+1.03%), Auto (+0.66%), Financial Services (+0.27%), and Consumer Durables (+0.06%).

The top losers were FMCG (-1.53%), Pharma (-0.26%), Oil & Gas (-0.14%), and Metal (-0.09%).

SECTORS – NOTABLE ACTION
MEDIA +2.26%
REALTY +1.03%
AUTO +0.66%
FMCG -1.53%
PHARMA -0.26%
OIL & GAS -0.14%

Stocks Ban List

(SEBI) F&O ban list (GNFC close at +554.20), (AARTIIND close at +438.25), (GRANULES close at +533.90), (HINDCOPPER close at +262.70), and (ABFRL close at -288.70) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

SAIL, CHAMBLFERT, and BANDHANBNK stocks has the possibilities of entrance in the ban list.

ABFRL stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 23200 to 23800 is the Nifty 50 trading range.

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This article is only for educational purposes and is not an investment advice.