The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday amid mixed global cues.
At 08:32 IST, The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,474.50 level, a premium of nearly 168 points from the Nifty futures’ previous close.
The domestic benchmark indices, Nifty 50 and Sensex, demonstrated notable volatility in Wednesday’s session on November 27. While the rebound in Adani Group stocks was a positive development, it was somewhat tempered by the underperformance of key index heavyweights. This created a dynamic trading environment with significant fluctuations. Nevertheless, it is encouraging to see that the indices ultimately closed the day with healthy gains, reflecting resilience in the market.
“Indian indices continue to exhibit positive upside as a result of healthy consolidation and the likelihood of strong H2FY25 earnings forecasts. In Asia, market sentiment was mixed due to the potential tariff impositions by the US. Meanwhile, the Chinese market rebounded on expectations of additional stimulus measures. The global sentiment is positive as the US FOMC minutes and a truce in the Middle East were optimistic. Decelerating inflation and robust growth prospects could lead to continued rate cuts by the Federal Reserve,” said, Vinod Nair, Head of Research, Geojit Financial Services.
Asian shares had a quiet session on Thursday, with the MSCI index for Asia-Pacific shares outside Japan slipping 0.07%. Meanwhile, Japan's Nikkei managed to gain 0.46%. The dollar faced pressure after recent US data indicated that progress in slowing inflation had stalled, even though the economy showed signs of resilience. This situation has led to uncertainty regarding the Federal Reserve's potential actions in the upcoming year. Investors are closely monitoring these developments to gauge their impact on market trends moving forward.
VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today said that today, the November Series will expire for most stocks on the NSE. Meanwhile, new stocks will join the F&O and derivatives segments. Though the weekly expiry concludes today, the monthly expiry is applicable for all indices except for Nifty 50 and Sensex. In the last four sessions, Nifty 50 managed to recover 4% of its recent dip, and the index is currently trading between its 20-day and 50-day EMAs.
Market participants should take this moment to prepare for the next move, as the index is expected to trade within a 3-5% range in the next 10 days. They could benefit by maintaining a neutral stance on the index. Meanwhile, their focus should be on accumulating quality stocks to leverage the next upswing in the market. In this situation, mid-cap, PSU banks, infra, media, metals, and energy stocks are expected to grab attention. On the other hand, stocks such as NPTC Green, LIC Housing Finance, IndiaMART InterMESH Ltd, LINC, Punjab National Bank, IRCTC, and Zee Entertainment Enterprises could remain in focus in the next trading session due to their lucrative price levels. Amid these developments, Nifty 50 could gain support between 24,155 and 24,020 and meet resistance between 24,450 and 24,600 in the next session.
According to Tejas Shah, Technical Research, JM Financial & BlinkX, the Bank Nifty was an underperforming sector as compared to Nifty 50 in today’s trading session. However, the technical structure of Bank Nifty is relatively stronger than Nifty 50 since BN is holding above its 50 Day Exponential Moving average whereas Nifty 50 is still trading below its 50 Day EMA. Presently, BN is trading near the crucial resistance zone of 52,500-600 levels. The resistance zone of 52,500-600 holds a lot of importance in the current scheme of things and any decisive closing above the same for a day or two could easily drive the BN index higher by another 800-1000 points. On the downside, the support zone lies at 51,900-52,000 / 51,400-500 while the resistance is seen at 52,500-600 / 53,500-700.
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