Why did the Nifty 50 sink today, What’s Behind Nifty’s Decline and what does it mean for your investments?

NiftyTrader • November 21, 2024

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Index	Price	Change	% Chg
Nifty 50	23,349.90	-168.60	-0.72%
Nifty MidCap 50	15,167.55	–17.45	-0.11%
Nifty SmallCap 50	8,513.50	–22.60	-0.26%
Nifty Bank	50,372.90	-253.60	-0.50%
Nifty Financial	23,273.45	-129.60	-0.55%
BSE SENSEX	77,155.79	–422.59	–0.54%

At the close, the Nifty 50 was at 23,349.90 down by 0.72%

After a brief recovery on November 19, the Indian stock market found itself under pressure again on November 21, as NSE Nifty 50 opened with a red gap down, dropping by 0.72%. By the end of the session, the index closed below the 23,350 mark, losing 168.60 points.

The market has been struggling with a lower highs-lower lows pattern, continuing its bearish trend. The 200-DMA (Daily Moving Average) acted as a strong resistance, keeping the index under 23,540, and confirming the weak market sentiment. RSI (Relative Strength Index) indicators showed a bearish crossover, adding fuel to the pessimism. Nifty‘s lackluster performance today raises the question: Can it break the downward trend, or will it continue to slide?

What’s Behind the Market’s Struggles?

The Adani saga once again looms large over the market, particularly after Adani Group stocks plummeted by 23%, following news that Gautam Adani and other executives faced US bribery charges. This not only hammered the group’s stocks but also created a ripple effect across the broader market.

Global concerns have also intensified, with the ongoing Russia-Ukraine conflict and rising nuclear tensions, leaving investors in a state of uncertainty. Adding to the pain was the surge in FII selling, which significantly hurt the financials sector, worsening the already fragile market sentiment.

A Key Level to Watch: 23,200

The market is now hovering near a crucial support level at 23,200. If Nifty falls below this threshold, it could trigger a larger market correction, leaving traders on edge. However, resistance remains at 23,550, and a decisive move above this level could spark a potential rally, offering a glimmer of hope to bulls.

Can the Market Bounce Back?

While the BSE and NSE clarified concerns regarding margin trading facilities, stating there’s no reduction in eligible securities, this confusion did little to ease investor concerns. With volatility index India VIX surging by 2.09%, market instability is palpable.

Looking ahead, the SEBI measures aimed at stabilizing the market could prove beneficial for long-term stability. However, the immediate sentiment remains weak, with FII selling and global geopolitical tensions overshadowing any potential recovery.

What Lies Ahead?

As the Adani case continues to evolve and global markets remain shaky, Nifty faces an uphill battle. Will it hold the 23,200 support, or is the market poised for deeper corrections? Only time will tell.

Stay tuned. The market’s next move could be crucial.

Bank Nifty: down by 0.50%

Bank Nifty and BSE Sensex slid into the red zone. The Bank Nifty opened down by 0.50%, and it wasn’t long before it closed in the red at 50,372.90. But the surprises didn’t end there. The BSE Sensex, too, struggled to stay afloat, closing 0.54% lower at a low of 77,155.79.

In the sectorial front, the Realty sector has experienced a remarkable gain of 0.93% today, leaving many investors questioning: Is this just the beginning? Among the big winners in this sector, Prestige Estates Projects Ltd. soared by an impressive 3.92%, while The Phoenix Mills Ltd. wasn’t far behind, jumping 3.31%.

But here’s the twist: the Media sector has taken a nosedive, shedding a painful 2.40%. It’s hard to ignore the sharp drop in stocks like Saregama India Ltd., which plunged 4.53%, and Tips Music Ltd., which fell by 3.90%.

FII/FPI Foreign investors have been significantly selling off their positions, with a net outflow of ₹5,320.68 Cr. Despite buying activity of ₹16,559.63 Cr, the heavy selling of ₹21,880.31 Cr indicates persistent bearish sentiment among FIIs.

DIIs stepped up their game with a buy value of Rs. 14,555.77 crore and a sell value of Rs. 10,355.61 crore, showing a net buying of Rs. 4,200.16 crore.

Bank Nifty

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

The gainers included Federal Bank with a 2.01% increase, Axis Bank with a 0.84% increase, AU Bank with a 0.66% increase, Kotak Bank with a 0.65% increase, and ICICI Bank with a 0.54% increase.

On the other hand, the biggest losers in the sector included Punjab National Bank with a 4.22% decline, Bank of Baroda with a 3.58% decline, Canara Bank with a 3.29% decline, State Bank of India with a 2.75% decline, and IDFC First Bank with a 2.55% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 21st November, 2024

22 K Gold / g	₹ 7,145	+ ₹ 30
24 K Gold / g	₹ 7,795	+ ₹ 33
18 K Gold / g	₹ 5,846	+ ₹ 24

Silver / g	₹ 92
Silver / kg	₹ 92,000

Rupee Stays Stagnant at 84.42 Against the Dollar – What’s Keeping It From Moving? 🌍💸

The Indian Rupee remained flat at 84.42 against the US dollar in early Thursday trade. But what’s behind this standstill? Despite a weaker US dollar, the rupee struggled to make significant gains, weighed down by volatile crude prices and foreign fund outflows.

Crude Oil Prices & Outflows Put the Rupee in a Hold

While a slightly weaker dollar supported the local currency, volatile crude oil prices kept the market on edge. On top of that, the continuous outflow of foreign funds added pressure, preventing any major appreciation in the rupee. At the interbank foreign exchange, the rupee opened at 84.41 but soon slipped to 84.42, sticking to its previous closing level.

The foreign exchange market was closed on Wednesday due to assembly elections in Maharashtra, but it’s clear that the currency has been stuck in a range despite fluctuating global factors.

Crude Oil at $72.97 – Will It Push the Rupee Down Further?

Meanwhile, Brent crude inched up by 0.22% to $72.97 per barrel, adding to the uncertainty in the currency market. Rising crude prices are always a concern for the rupee, as they increase the country’s import bill and put additional pressure on the currency.

The Dollar Index Slips – Could the Rupee Gain Momentum?

The Dollar Index was down by 0.11% at 106.49, reflecting some weakness in the US currency. However, with the global market still uncertain, will the rupee break free from its stagnant state and start gaining ground?

What’s Next for the Rupee?

With global uncertainties and the pressure from crude prices, it’s clear that the rupee is caught in a tight spot. But could the weaker US dollar provide just the momentum needed for the rupee to turn around, or will the continuous outflows and rising oil prices keep it stuck at 84.42? Only time will tell.

Stocks Highlights

Power Grid Corporation of India Ltd. jumped 3.25% from its previous close of Rs 315.05, with the stock trading at Rs 325.30. But the real story lies in its incredible 3-year return: a whopping 118.22%, far outpacing the Nifty 100, which gave just 34.97%.

To add more intrigue, the company has outperformed the BSE Power index, which delivered a 105.53% return during the same period. The question is, what’s behind this growth?

But here’s the deeper look: Power Grid allocated 19.14% of its operating revenue to cover interest expenses, while 5.31% went to employee costs for the year ending March 31, 2024. Could this cost structure be one of the keys to its success?

In contrast, Adani Enterprises Ltd. took a dramatic fall, with its stock plummeting by -23.44% from Rs 2,821.50 to Rs 2,160.00. This steep drop raises eyebrows, especially as the company reported a 28.87% decline in sales, marking its first revenue contraction in 3 years.

Even though Adani Enterprises still delivered a 67.08% return over 3 years—better than the Nifty 100’s 34.97%—the recent slump has sparked some serious concerns. How long will this downturn last?

When we look at its financials, Adani Enterprises spent 4.72% of its revenue on interest expenses and 2.42% on employee costs in the year ending March 31, 2024. Could these figures be contributing to the stock’s decline?

What’s next for both these giants? While Power Grid seems to be on a steady rise, Adani Enterprises faces significant challenges. Will one continue its upward momentum, while the other struggles to regain its footing? Keep watching these developments closely!

Advance Decline Ratio

Today, the advance-decline ratio was 0.37 and the market breadth was negative. The volatility index India Vix increased by 2.09 to settle at 15.99 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 752
Decliners – 2048
52Wk High – 37
52Wk Low – 160
High Band Hitters – 69
Low Band Hitters – 132
200d SMA – 23579
50d SMA – 24803
20d SMA – 24058

Top Gainers and Losers Stocks

The top gainers were Power Grid (+3.25%), UltraTech Cement (+1.70%), Hindalco (+1.20%), Apollo Hospitals (+0.88%), and Grasim (+0.88%).

The top losers were Adani Enterprises (-23.44%), Adani Ports (-13.23%), SBI Life (-3.15%), SBIN (-2.75%), and NTPC (-2.51%).

Top Gainers and Losers Sectors

The top gainer sectors were Realty (+0.93%), and IT (+0.49%).

The top losers were Media (-2.40%), Metal (-2.28%), Oil & Gas (-1.48%), FMCG (-1.21%), and Auto (-0.91%).

SECTORS – NOTABLE ACTION
REALTY +0.93%
IT +0.49%
MEDIA -2.40%
METAL -2.28%
OIL & GAS -1.48%

Stocks Ban List

(SEBI) F&O ban list (IGL close at -311.40), (AARTIIND close at -425.60), (GNFC close at -555.55), (GRANULES close at -544.85), (HINDCOPPER close at -261.50), and (ABFRL close at -284.40) 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.

NATIONALUM, SAIL, BANDHANBNK, MANAPPURAM, CHAMBLFERT, ABCAPITAL, and NMDC stocks has the possibilities of entrance in the ban list.

HINDCOPPER, and ABFRL stocks has the possibilities of exit from the ban list.