Stock Market News: The domestic benchmark indices, Nifty 50 and Sensex, opened lower on Friday, started the day lower on Friday, impacted by lackluster earnings and worries about foreign investments. Meanwhile, information technology shares went against the trend following the Federal Reserve's expected decision to cut interest rates.
On Friday, Sensex fell 424.42 points to 79,117.37 in early trade; Nifty 50 dropped 132.7 points to 24,066.65.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that two contrasting trends are currently apparent in the market: first, the robust performance of global markets, particularly in the US, and second, the decline in the Indian market.
The record-breaking uptrend in the US market is now fuelled by the 'Trump trade', alongside anticipations regarding the realisation of the promised corporate tax reductions and their favourable effects on US corporate earnings.
The downturn in the Indian market can largely be linked to the continuous selling pressure from foreign institutional investors (FIIs), which persists this month as well. Following the substantial FII sell-off of ₹113,858 crores in October, FIIs have, up until now in November, divested ₹16,445 crores in the cash market.
Over the past couple of weeks, the benchmark index has been consolidating within 24,600-23,800 levels, indicating a short-term pause and a lack of strength in either direction. Therefore, a breakout beyond either side of this range could signal further direction. The index is currently facing a significant resistance zone created by the 20-day and 100-day simple moving averages (SMAs), which remains a crucial barrier. On the daily chart, the index is trending downward, forming lower peaks and troughs, reflecting a negative bias. Any sustainable upward movement above 24,600 levels could potentially lead to a rebound towards 24,800-25,000 levels.
The stock has decisively broken out of its past four years' "multiple resistance zone" between the 1200-1220 levels on a closing basis, indicating a strong breakout. This breakout is accompanied by significant volume, signifying increased participation in the rally. The stock is positioned well above its 20, 50, 100, and 200-day simple moving averages (SMA), and these averages are also rising alongside the price, which reinforces the bullish trend. The daily and weekly Bollinger Bands buy signal indicates increased participation. Additionally, the daily, weekly, and monthly Relative Strength Index (RSI) is in positive terrain, justifying the rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of ₹1,450-1,713 with downside support zone of ₹1,185-1,125 levels.
On the daily and weekly time frames, the stock continues to trend higher, forming a series of higher tops and bottoms, indicating a trend reversal. This buying movement was observed from the 30-week SMA support zone of 1049 levels. It has also decisively broken out past the three-month down-sloping trendline at 1175 levels. Huge rising volumes signify increased participation. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which justifies the rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of ₹1,385-1,585 with downside support zone of ₹1,180-1,135 levels.
The stock is experiencing a strong uptrend, forming a series of higher tops and bottoms, which indicates a sustained upward movement. Recently, the stock has decisively broken through multiple resistance levels at 750, suggesting a positive outlook. It is currently situated well above its 20, 50, 100, and 200-day simple moving averages (SMA), which are also trending upward alongside the rising price. This reinforces the bullish trend. Additionally, the increasing trading volume over the past week indicates greater market participation.
Investors should buy, hold and accumulate this stock with an expected upside of ₹835-930 with downside support zone of ₹750-720 levels.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
