The stock market started the day positively, with a surge in indices leading to an opening in the green zone.
The Nifty index started the day without much change because of the holiday in the US yesterday and a shorter trading day today. Despite this, it showed strength by trading within a small range and ended slightly lower by 5 points. However, it managed to stay above the important 19,800 level.
The Sensex experienced a significant increase of 54.58 points as it started at 66,051.66. Similarly, the Nifty also saw a gain of 20.90 points as it opened at 19,820.75. Out of the Nifty companies, 28 showed progress, whereas 22 experienced a decline.
The stocks that experienced the highest increase in value were Cipla, Divi's Lab, Dr. Reddy, NTPC, and MandM. On the other hand, the stocks that suffered the greatest decrease in value were Hero Motocorp, HCL Technology, Tata Motors, TCS, and Wipro.
Varun Aggarwal, founder and managing director, Profit Idea, said, "We remain positively biased on Indian economy for medium term. Short term support on Nifty lies at 19276 and major support lies at 18837. Nifty has shifted in a broader range of 20000-19500 levels. Medium term target of Nifty remains at 20466-21234-21410. FO expiry for November series next week, OI data has huge call writing at 20000 CE and 19500 PE levels".
"On weekly front, Maximum Call OI is at 20000 then 19900 strike while Maximum Put OI is at 19800 then 19700 strike. Call writing is seen at 19900 then 20000 strike while Put writing is seen at 19800 then 19700 strike. Option data suggests a broader trading range in between 19600 to 20000 zones while an immediate trading range in between 19,700 to 19,900 zones", added Aggarwal.
Analysts remain optimistic about the Indian economy in the near future. They pointed out that in the short term, the Nifty index has support at 19,276, with a significant support level at 18,837.
Nifty has shifted into a broader range of 20,000-19,500 levels, with a medium-term target ranging between 20,466-21,234-21,410.
Based on the data from the options market, it appears that there is a wider range of trading between 19,600 and 20,000 areas. In the short term, the trading range seems to be between 19,700 and 19,900 areas.
Aggarwal said, "Shares were mixed in Asia after a modest advance on Wall Street that kept the market on track for a fourth straight weekly gain. Markets in Japan and the U.S. are closed for holidays. Chinese developers rallied on signs of more government support. Better than expected consumer sentiment data, fall in US Jobless data and strong quarterly earnings by Chip maker Nivda lifted the US market up to 0.5 per cent yesterday".
He added, "European stocks edged marginally higher, holding at a two-month high, helped by to a rally across commodity-linked sectors in a quiet trading session amid the US Thanksgiving holiday. UK, Germany and France Index are flat to positive. Cipla nosedived 8 per cent after the news that the US health regulator has pulled up drug major Cipla for various manufacturing lapses at its Pithampur (Madhya Pradesh) based manufacturing facility".
Asia's markets displayed a mixed performance after a modest advance on Wall Street, maintaining momentum for a fourth straight weekly gain.
Due to the holidays in Japan and the US, the markets were closed. However, Chinese developers experienced a surge in activity due to indications of greater support from the government.
In the United States, the market experienced a 0.5 percent increase due to positive consumer sentiment data, a decrease in jobless data, and impressive quarterly earnings from Nvidia, a chip maker.
European stocks slightly increased, remaining at a two-month peak, thanks to a surge in sectors related to commodities.
Aggarwal said, "India VIX was down by 4.60 per cent from 11.86 to 11.31 levels. Volatility slightly cooled off and comforted the bulls but momentum was clearly missing. We expect IT, Banking, Pharma, FMCG, Petrochemicals, Metals sector to do good. Bullish bias risk defined strategies are best for traders. Expect higher targets to hit on Nifty".
Despite the positive developments, Cipla experienced a setback when its stock plummeted by 8 percent following reports that the US health regulator expressed concerns regarding manufacturing errors at its Pithampur facility in Madhya Pradesh.
The India VIX volatility index experienced a 4.60 percent decline, dropping from 11.86 to 11.31 levels. This suggests a small decrease in volatility. However, despite this, the market did not show much momentum.
Analysts predict that industries such as information technology, banking, pharmaceuticals, fast-moving consumer goods, petrochemicals, and metals will have a strong performance. They suggest that traders should use bullish bias risk-defined strategies, as they anticipate the Nifty index to reach higher targets.
