Stock market: Early decline amid positive indicators
Nov 16, 2023
Maharashtra (Mumbai) [India], November 16 : The stock market kicked off the trading session on a cautious note on Thursday, with stock indices displaying a negative flat opening before slipping into the red territory.
As the market unfolded, the benchmark Sensex experienced a dip of 120.45 points, commencing at 65,555.48. Simultaneously, the Nifty witnessed a decline of 33.45 points, initiating the session at 19,642.00.
Diving into the specifics of Nifty firms' performance, the market witnessed 15 advances and 35 declines. Noteworthy among the Nifty gainers were NTPC, ONGC, BPCL, Coal India, and Tata Motors.
On the flip side, Bajaj Finance, Bajaj Finserv, Grasim, Hindalco, and JSW Steel were identified as the top losers during the market's opening hours on Thursday.
Varun Agarwal, founder, and managing director of Profit Idea said, "Diwali and Post Diwali market has notched up by nearly 250 points. Positive CPI data, better earnings expectations, and possibility of an interest rate cut in future is taking markets higher".
Aggarwal added, "Flat opening expected today. The market is likely to remain rangebound. Nifty is expected to face resistance at 19,767 on the spot. We remain positively biased on the Indian economy for the medium term. Short-term support on Nifty lies at 18,837 and major support lies at 18468-18134".
A substantial Open Interest (OI) at 19,800 Call and Put levels adds an element of caution, prompting traders to adopt risk-defined strategies.
"Huge OI at 19800 CE levels. Traders should look to trade with risk-defined strategies. On the downside, crucial support lies at 19300-19000 OI levels. Nifty has shifted in a broader range of 19800-19300 levels. Medium-term target of Nifty remains at 20466-21234-21410", said Aggarwal.
"Volatility" is expected to continue. Expect India to "outperform global markets," he said
"We expect a lot of inflows coming in Indian Markets. SIP's (Systematic Investment Plans) have been on rise every month and lot of money is available with fund managers to park if dip comes. Investors should utilise this opportunity for medium term to accumulate quality mid and small cap stocks," Aggarwal said.
The sectors anticipated to perform well include IT, Banking, Pharma, FMCG, Petrochemicals, and Metals, he added.
