Flat Market With Neutral Bias, Need Technical Breakouts

The Indian headline index opened flat with mixed global cues during the morning Asian session however closed on a mixed market breadth. The index Nifty 50 opened flat and remained range bound till noon but witnessed buying at later phase and ended higher at 24274.90, up 80.40 points.  The advance decline of NIFTY was 25:25 with neutral breadth. The bank nifty index also opened flat around 52150 and made an intraday high of 52444, closed at 52301.80. 

Among sectors IT, Pharma, Realty, Healthcare sector saw selling pressure while buying was seen in the Automobile, Bank, Energy, FMCG, Metal and Media sectors. Top gainer were Adani group shares surged up to 12% while Ola electric share jumped 20% and Vodafone Idea gained another 11% today.The broader market breadth was positive with an advance and decline ratio of 1729/743.

On November 27, DII bought a net 1302 crore while FII bought marginal Rs 7.8 crore of Indian equities. There is clarity of FII returning to Indian market as of now and when FII shows a series of buy going forward may provide impetus to bulls. 

In corporate development today, Waaree Renewable bags ₹1,233.5-crore solar project order.NBCC signed an MoU with HUDCO for a 600-crore rupees project in Noida.Godrej properties seeks to sell 5.5% equity (1.54 crore shares) of the company via QIP to raise up to ₹4,000 crore, as per market information.

In economic developments, US data showed, the world’s largest economy grew at 2.8% YOY for the third quarter, as per second estimate. The report also showed that, PCE- the Fed’s preferred metric rose at 1.5% YoY while excluding food and energy, the core PCE climbed 2.1%, versus 2.2% in the previous estimate. 

At the time of writing, the US market traded flat with moderate gains and losses. The US market is on holiday on Thursday due to Thanksgiving.

Index Outlook 

NIFTY:The index is trading in a broad range as of now between 24350-24120 and a breakout from the range may give further guidance to the market. A breakout above 23350 may give intraday buying opportunity. The major resistance for the index is placed at 24500 mark.

Bank Nifty:The index has a major resistance at 52500 levels and breakout above the same may bring in buying trigger which may push the index towards 52800-52900 area. The immediate support is at 52000 and then 51700 levels.

NIFTY Midcap select:The index faces intraday resistance at 12660-680 levels with immediate support at 12580 and then 12520 levels. A sustained trading above 12680 may bring in upside spikes going forward.

The report is being prepared by Bitupan Majumdar, an independent SEBI registered research analyst with registration code INH30006962. Please consult your financial advisor before taking investment decision.