Market Performance Overview
On November 14, prior to the holiday break for Guru Nanak Jayanti, both the Nifty 50 and Sensex extended their losses for the sixth consecutive session. The Sensex closed at 77,580.31, down by 110.64 points or 0.14%, while the Nifty 50 settled at 23,532.70, reflecting a decrease of 26.35 points or 0.11%.
Technical Analysis
The Nifty 50 formed a small negative candle on its daily chart, characterized by a long upper shadow and a minor lower shadow. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, this pattern resembles a doji but lacks classical confirmation. The index is currently positioned just below its crucial 200-day Exponential Moving Average (EMA) at 23,540, which has historically served as a significant reversal point.
- Current Support and Resistance Levels:
- Support: 23,450
- Resistance: 23,650
Shetti notes that if the Nifty breaks decisively below 23,500, it could slide further down to levels between 23,200 and 23,000 in the coming week. Conversely, a sustained move above 23,700 to 23,800 could signal a potential upside bounce.
Key Influencing Factors
- Global Market Sentiment: Recent declines in U.S. stock indices have dampened investor confidence in global markets. Concerns over inflation and interest rates continue to loom large.
- Foreign Institutional Investors (FIIs): Persistent selling by FIIs has exerted downward pressure on Indian equities. In October and early November, FIIs have been net sellers consistently.
- Domestic Institutional Activity: Domestic institutional investors have been absorbing some of the selling pressure from FIIs, which may help stabilize the market.
Bank Nifty Prediction
The Bank Nifty index gained modestly on November 14, closing at 50,179.55, up by 91.20 points or 0.18%. It formed an inverted hammer candlestick pattern during this session.
- Key Support and Resistance Levels for Bank Nifty:
- Support: 49,750
- Resistance: Potential upside towards 50,900 – 51,200
Amol Athawale from Kotak Securities advises traders to remain cautious in this segment as volatility persists.
Stocks in Focus
Several stocks will be under scrutiny today due to their performance and recent developments:
- Aarti Industries
- Aditya Birla Fashion and Retail
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals)
- Granules India
- Hindustan Copper
These stocks are currently on the F&O ban list as they exceeded the market-wide position limit (MWPL), restricting new positions in their futures contracts.
Conclusion
As trading resumes after a brief holiday break, investors should prepare for a potentially volatile session characterized by negative sentiment and resistance at key levels. Monitoring global cues and institutional activities will be crucial in navigating today’s market dynamics.Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with certified financial advisors before making any investment decisions based on market trends or stock performances.
